Last month, the SEC pointed out the status of the ETH securities investigation.
“Ethereum spot ETF approved in May, virtually impossible.”
“SEC will approve ETH spot ETF after litigation”
Through its own report published on the 11th (local time), the JP Morgan research team analyzed that Ethereum spot ETF applications scheduled to announce the results of the approval review next month had a high probability of being rejected.
The main reason for JP Morgan's refusal to approve the Ethereum spot ETF in May is the recent move by the U.S. Securities and Exchange Commission (SEC). The SEC has been investigating the Ethereum Foundation since last month to determine whether Ethereum is a security, and according to this, it is of the opinion that the approval of the Ethereum spot ETF may be rejected.
The report stated, “Considering that the SEC has launched an investigation into the Ethereum Foundation, the likelihood of approving the Ethereum spot ETF in May is assessed to be less than 50%.”
JP Morgan pointed out that Ethereum investors will be greatly disappointed by the rejection of the approval of the Ethereum spot ETF in May, which could cause the price of Ethereum to plummet.
JP Morgan predicted that the applicant and the SEC would initiate litigation over the Ethereum spot ETF.
The report said, “The most likely scenario for the Ethereum spot ETF is that applicants file a lawsuit with the SEC after the SEC rejects approval in May,” and added, “The litigation pattern is similar to that of the past Bitcoin (BTC) spot ETF.” “It looks like it will be similar to the lawsuit between Scale and the SEC,” he explained.
He continued, “It appears that the SEC, which lost the lawsuit, will eventually approve the Ethereum spot ETF.”
Reporter Seungwon Kwon ksw@
