JPMorgan Revises Spot Ethereum ETF Approval in May to 50%

The global largest bank is the latest to revise its prospects concerning the SEC’s evaluation of bids to provide spot Ethereum ETFs. 

JP Morgan analysts note there is a possibility of the Securities and Exchange Commission (SEC) rejecting a spot Ethereum exchange-traded fund (ETF) in May since it is to ratify it.

SEC Likely to Extend Approval of Spot Ethereum ETF Beyond May

 In a Thursday note, the analysts highlighted the regulator’s latest actions against Ethereum-associated entities by claiming that things do not seem okay for consent. The assessment continues a progressively cynical market view concerning the potential new investment vehicle.

According to the report, the latest news that the Securities and Exchange Commission is probing companies linked to the Ethereum Foundation is also consistent with the idea that there is no more than a 50% probability of spot Ethereum exchange-traded fund being sanctioned by May. 

In March, there was news concerning the Ethereum Foundation, a not-for-profit organization that backs the Ethereum ecosystem,  probed by a ‘state entity.’ Despite the Securities and Exchange Commission not verifying this information to a particular media outlet, other media outlets verified it.

Spot Ethereum ETF to Pursue Court Intervention

The JP Morgan report also revealed that in case an Ethereum exchange-traded fund fails to secure approval by May’s deadline, applicants might take action against the Securities and Exchange Commission. 

It also noted that the most possible scenario is the regulator finally losing the litigation, akin to the Ripple and Grayscale legal wars in 2023. This means the regulator will finally ratify spot Ethereum exchange-traded funds, but not as soon as this coming month.

 In a more positive March take, JP Morgan claimed that Ethereum could evade being designated as a security because of the project’s increased decentralization and instead be considered a commodity. 

However, it recently added that it was ‘unconvinced that the Securities and Exchange Commission will consider Ethereum a commodity’ within the coming weeks.

JPMorgan is not the only entity doubtful of May approval. In March, Bloomberg Intelligence’s ETF analysts revealed that the products would not likely be ratified in May. 

Meanwhile, James Butterfill, CoinShares’ head of research, told a media outlet that ‘investors may encounter disappointment’ by the deadline.