tl;dr
The SEC's approval of spot Bitcoin ETFs has led to speculation about the approval of spot Ethereum ETFs, but JPMorgan's most prominent blockchain/crypto analyst is skeptical about this happening before May. He believes that for the SEC to approve spot Ethereum ETFs, Ethereum would need to be categor...
The SEC's approval of spot Bitcoin ETFs has led to speculation about the approval of spot Ethereum ETFs, but JPMorgan's most prominent blockchain/crypto analyst is skeptical about this happening before May. He believes that for the SEC to approve spot Ethereum ETFs, Ethereum would need to be categorized as a commodity, similar to Bitcoin, and he sees this as uncertain with no more than a 50% chance. While JPMorgan remains cautious, other analysts are more optimistic about the approval of spot ETH ETFs, and several firms have filed for spot Ethereum ETFs, indicating a growing interest in Ethereum-based investment products. In addition, SEC Chair Gary Gensler has suggested that tokens using staking protocols, like Ethereum's ETH, could be considered securities under U.S. law, and he has cautioned that the approval of Bitcoin ETFs does not set a precedent for other crypto assets.
Although the crypto market seems to believe that SEC-approved spot Ethereum ETFs are just around the corner judging by Ethereum’s price action since January 11, the day that the SEC approved eleven spot Bitcoin ETFs, JPMorgans most prominent blockchin/crypto analyst is not so sure. Nikolaos Panigirtzoglou, an analyst at JPMorgan, told The Block that for the SEC to approve spot Ethereum ETFs by May, it would need to categorize Ethereum as a commodity, akin to Bitcoin. However, he believes this is uncertain, giving it no more than a 50% chance of happening before the deadline. The SEC recently approved spot Bitcoin ETFs after years of rejections. This development has led to speculation about Ethereum ETFs being next, especially as Ether’s price surged by 18.08% in the past week, outperforming Bitcoin’s 1.87% gain. Panigirtzoglou noted that the SEC still seems to view all cryptocurrencies other than Bitcoin as securities. This stance was echoed last year by SEC Chair Gary Gensler, who has suggested that tokens using staking protocols, like Ethereum’s ETH, could be considered securities under U.S. law. Gensler has refrained from explicitly stating whether ETH is a security. In the context of approving spot Bitcoin ETFs, Gensler recently cautioned that this should not be interpreted as the SEC’s readiness to approve listing standards for crypto asset securities. While JPMorgan remains cautious, other analysts like Bloomberg Intelligence’s James Seyffart are more optimistic about the approval of spot ETH ETFs
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