JPMorgan’s analysts led by Nikolaos Panigirtzoglou are skeptical.
“Whereas we’re sympathetic to the above arguments we’re skeptical that the SEC will classify ether as a commodity as quickly as Might,” analysts led by Nikolaos Panigirtzoglou mentioned in a word to purchasers on Jan. 18, including that the probabilities of approval of a spot ether ETF by Might this 12 months is “not greater than 50%.”
ETH has surged in current weeks following the approval of a spot bitcoin ETF as merchants have wager on the probability of the approval of an ether exchange-traded fund. If authorized, it might be the primary time skilled traders within the U.S. can acquire publicity to the blockchain’s token with out having to personal it.
Following Ethereum’s transition from the proof-of-work to proof-of-stake consensus mechanism in 2022 and the damaging impression this shift has had on the blockchain’s decentralization, ether now appears extra much like different altcoins exterior of bitcoin (BTC) which have been categorised as securities by the SEC, the report mentioned.
“The continuing lawsuits by the SEC in opposition to crypto exchanges providing staking companies for proof-of-stake blockchains together with Ethereum, make a spot ether ETF approval more difficult at the least till these lawsuits are resolved,” the report added.
Learn extra: Bitcoin ETF Debut Serves as a Lesson for Ether ETF Speculators
