Ethereum ETF: JP Morgan is skeptical that ETH qualifies as a commodity

Ethereum ETF: JP Morgan is skeptical that ETH qualifies as a commodity

On January 10, after years of denial, the first Bitcoin Spot ETF has been approved by the SEC. After this first victory, many netizens were considering the upcoming approval of the Ethereum Spot ETF. An opinion that is far from uniform.

Traders Consider Ethereum Spot ETF

The day after the approval of the Bitcoin Spot ETF, there was renewed enthusiasm Ethereum.

So between January 8 and 12 ETH price East from $2,200 to almost $2,700. Since then, the price has fallen slightly again, with ETH trading around $2,500.

SEC is going to verify ETH Ethereum

Quick, many watchers they assumed that traders are placing massively on the potential Ethereum Spot ETF. In other words, these traders buy the rumor with a view to sell news if the spot ETF were to be allowed.

Indeed, financial giants have already filed applications regarding the creation of such an ETF. So we find the requirements from Black stone, Grayscale, Hashdex, 21 shares, VanEck or Invesco & Galaxy.

For your part, The SEC has until May to make a decision regarding VanEck, 21Shares and HashDex files. He has until June for the grayscale file and July for the remaining files.

Unlikely approval?

However, while traders are already gearing up for the Ethereum ETF, opinions differ on the potential approval.

So, Nikolaos Panigirtzoglou told our colleagues at TheBlock that the game is far from over:

“It is far from being obtained. I wouldn’t give more than a 50% chance that the SEC will list Ethereum as a commodity before May. »

Bitcoin is currently the only cryptocurrency officially classified as a commodity by the SEC.

On the Ethereum side, things are more complicated. Indeed, Gary Gensler, president of the SEC, has stated several times that in his opinion Ethereum was a security and not a commoditybecause of its Proof of Stake.

For your part, CFTC (Commodity Futures Trading Commission) Does he consider Ethereum a commodity?.

As you may have understood, before the approval of the Ethereum Spot ETF can be announced, US regulators will first have to agree on the nature of the asset. Opinion shared by Nikolaos Panigirtzoglou:

“In our view, for the SEC to approve an Ethereum spot ETF in May, it would have to classify Ethereum as a commodity (similar to Bitcoin) rather than a security. »

Regardless, the next few months promise to be interesting for the United States. The SEC will have to pick up the pace to make a decision next May.

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