Bitcoin
$64,009.07+1.67%
Ethereum
$3,229.53-1.25%
Binance Coin
$595.77-0.62%
Solana
$138.28+0.04%
XRP
$0.51649086+1.21%
Dogecoin
$0.14443074-1.85%
Toncoin
$5.34-1.82%
Cardano
$0.45884160-0.58%
Shiba Inu
$0.00002433+0.47%
Avalanche
$35.67+5.01%
Tron
$0.11930050-1.73%
Wrapped Bitcoin
$64,033.54+1.54%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Countdown to Consensus 2024The largest and longest running event that covers all sides of Crypto and Web 3
29
DAYS
12
HR
28
MIN
52
SEC
Policy

Ether Spot ETFs Still Have No More Than 50% Chance of Approval in May: JPMorgan

There will probably be litigation against the SEC after May if ether ETFs aren’t approved, the report said.

By Will Canny
AccessTimeIconApr 11, 2024 at 2:04 p.m. UTC
Updated Apr 11, 2024 at 2:06 p.m. UTC
U.S. SEC Chair Gary Gensler (Jesse Hamilton/CoinDesk)
U.S. SEC Chair Gary Gensler (Jesse Hamilton/CoinDesk)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now
  • JPM says the odds of a spot ether ETF approval in May are still no more than 50%.
  • There will likely be litigation against the SEC if the regulator doesn’t approve the products in May, the report said.
  • Spot ether ETFs will eventually be approved, the bank said.

Recent news that the U.S. Securities and Exchange Commission (SEC) is investigating companies associated with the Ethereum Foundation is consistent with the view that there is no more than a 50% chance of spot ether (ETH) exchange-traded fund (ETF) approval in May, JPMorgan (JPM) said in a research report on Thursday.

The bank reiterated its view that approval of these products is unlikely next month, a position first expressed in January. The SEC must make final decisions on some of the ETF applications by May 23. The SEC approved spot bitcoin (BTC) ETFs in January, stirring speculation in some quarters that versions for ether, the token of the Ethereum blockchain, may follow suit.

“If there is no spot ether ETF approval in May, then we assume there is going to be litigation against the SEC after May,” analysts led by Nikolaos Panigirtzoglou wrote.

JPMorgan said the most likely outcome is that the SEC will eventually lose this litigation, similar to what happened in the Grayscale and Ripple cases, and will eventually approve spot ether ETFs. But not in May.

One reason the SEC is likely to lose any litigation is because of the declining concentration in staking on Ethereum, raising the chance that ether will avoid being designated as a security, the report said.

The bank noted in a report last week that Lido’s share of staked ether has continued to fall, which should reduce concerns about concentration in the network.

Read more: Ether Could Avoid Designation as a Security With Centralization Risk Easing, JPMorgan Says

Edited by Sheldon Reback.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image
Will Canny

Will Canny is CoinDesk's finance reporter.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.