Summary
JPMorgan says SEC investigation of Ethereum Foundation companies makes approval of spot ether ETF unlikely in May. SEC must make final decisions on ETF applications by May 23, and approval is not expected. If no approval, litigation against SEC may follow.
Key Points
1. The U.S. Securities and Exchange Commission (SEC) is investigating companies associated with the Ethereum Foundation, indicating a lack of confidence in the approval of a spot ether (ETH) exchange-traded fund (ETF) in May.
2. JPMorgan (JPM) believes there is no more than a 50% chance of an ether ETF approval next month, and they have maintained this stance since January.
3. If a spot ether ETF is not approved in May, it is anticipated that there may be legal action taken against the SEC following the deadline for final decisions on ETF applications by May 23.