JPMorgan has voiced doubts about the Securities and Exchange Commission’s (SEC) probability of approving spot Ethereum exchange-traded funds (ETFs) by May, which is the first deadline for such approvals. Nikolaos Panigirtzoglou, a representative from JPMorgan, highlighted the importance of the SEC’s classification of ETH as a commodity, akin to Bitcoin, for the approval of spot Ethereum ETFs. He stated that the chances of the SEC classifying Ethereum as a commodity before May are not more than 50%.
The SEC recently gave the green light to spot Bitcoin ETFs, marking a significant milestone after over a decade of rejections. This has sparked optimism among traders that spot Ethereum ETFs could be next in line for approval. However, Panigirtzoglou stressed that the SEC is still indicating its stance, suggesting that it views all cryptocurrencies outside Bitcoin as securities. Last year, JPMorgan proposed that U.S. lawmakers might establish a new category for ETH to avoid classifying it as a security.
On the other hand, ETH’s price saw a significant increase between January 10 and January 12, rising by 13.5%. This surge pushed the cryptocurrency above $2,650 for the first time since May 2022. The recent approval of spot Bitcoin ETFs seems to be the catalyst for this rally. The question now is whether the cryptocurrency can maintain its current market capitalization of $322 billion. Over the past 60 days, ETH’s price has outperformed Bitcoin’s positive move, gaining 27% compared to Bitcoin’s 24%.
The approval of spot Bitcoin ETFs was anticipated to boost Bitcoin’s price by creating new opportunities for clients who could not directly acquire cryptocurrency. However, ETH’s recent surge has sparked speculation about its potential to overshadow Bitcoin in the market. Bloomberg ETF analysts currently estimate a 70% chance of an Ethereum ETF approval by May, compared to a 95% likelihood for Bitcoin. Major asset managers, including BlackRock, Fidelity, Grayscale, and VanEck, are awaiting the final SEC decision on spot Ethereum ETFs by May 23. Some analysts, considering the precedent set by Bitcoin, believe the final decision might arrive sooner than expected.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Nikolaos Panigirtzoglou |
| Companies | VanEck, Securities and Exchange Commission, Fidelity, BlackRock, Grayscale, JPMorgan |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
