JPMorgan Optimistic on Ethereum ETF Approval by SEC
JPMorgan maintains an optimistic outlook on the Securities and Exchange Commission's (SEC) approval of spot Ethereum ETFs, despite earlier reservations about the likelihood of approval by the initial May deadline.
Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, stated to The Block that if the SEC does not approve spot Ethereum ETFs in May, they anticipate a subsequent litigation process. However, Panigirtzoglou believes that the SEC is likely to lose this litigation, eventually leading to the approval of spot Ethereum ETFs, albeit not by May.
Panigirtzoglou has retained a 50% chance of approval by May, despite recent reports indicating the SEC’s investigation into the Ethereum Foundation and its efforts to classify ether (ETH) as a security.
In a recent report, Panigirtzoglou and his team highlighted Ethereum’s diminishing centralization concerns, such as the declining market share of platforms like Lido, as a factor that could mitigate the classification of ETH as a security in the future.
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They emphasized the importance of network decentralization in determining the regulatory classification of digital tokens, referencing the SEC’s “Hinman documents” released last June.
While some analysts, like Bloomberg’s senior ETF analyst Eric Balchunas, have reduced their optimism regarding the SEC’s approval of spot Ethereum ETFs by May, the SEC continues to review spot ETH ETF applications from entities like Fidelity, Grayscale, and Bitwise. Comments on these applications are expected later this month.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
