Bitcoin ETFs approved after a long wait, but the market’s expectations for new ETFs are not over. Investors waiting SEC to approve Ethereum ETF’s.
JPMorgan Analysts Comment on Price Impact of Possible Ethereum ETF Approval
JPMorgan and two analysts revealed their predictions about the potential approval of Ethereum’s Spot ETFs.
Ethereum is poised to benefit from the launch of Spot ETFs, but the market reaction may be calmer than Bitcoin’s ETF approvals.
Investors expect the US Securities and Exchange Commission (SEC) to approve spot Ethereum ETFs in May. However, Ethereum’s price action may be calmer than Bitcoin’s in the run-up to ETF approvals.
According to JPMorgan, the price of Ethereum has risen 20% since BlackRock first took over the iShares Ethereum Trust on November 9. However, this compares to a 55% increase when BlackRock applied for a spot ETF for Bitcoin.
“We think the Ethereum spot ETF is less ‘overhyped’ than its Bitcoin counterpart, perhaps due to its lower market cap and lack of ‘first-mover advantage’ over Bitcoin,” said JPMorgan analyst Kenneth Worthington.
According to analysts, the expected lack of excitement may be due to regulatory uncertainty over Ethereum’s status as a security. According to Nico Cordeiro, chief investment officer at Strix Leviathan, Bitcoin’s status as a commodity and a security was clear.
JPMorgan estimates that there is “no more than a 50% chance” of spot Ethereum ETF approval by May 23, the deadline for the SEC to approve or reject the Ark/21Shares application.