Over the past couple of months, many opinions came to light over the odds of approval for Ethereum spot ETF applications by the American securities regulatory body but no claims supported more than a 50% chance of approval.
At present 7 Ethereum spot ETFs are in queue on the table of the United States Securities and Exchange Commission (SEC) seeking to get regulatory approval, just like 11 Bitcoin spot ETFs secured approval in Jan 2024.
Many people believe that approval for ETH spot ETF applications will be easy, just like the case of Bitcoin, but at the same time, many financial experts said that the case of Ethereum is very different over Bitcoin.
In recent weeks, many experts said that the main road bump in the path of ETH spot ETF approval is legal clarity around Ethereum (ETH) Cryptocurrency.
As we know last week, the SEC body reportedly started an investigation against the Ethereum Foundation, a non-profit organisation behind the Ethereum crypto project which is responsible for the development of the Ethereum blockchain.
Just like Bitcoin, the Ethereum blockchain was running on Proof-of-work (PoW) consensus but in September 2022 the blockchain of this cryptocurrency shifted operations on the PoS consensus.
The use of PoS consensus by the Ethereum blockchain is a very big issue because PoS & PoW are different and this difference is responsible for the multiple questions about the legal nature of the Ethereum (ETH) coin.
Following the alleged investigation news around the Ethereum foundation, JPMorgan (JPM) analysts led by Nikolaos Panigirtzoglou said that if the SEC doesn’t approve an exchange-traded fund (ETF) for Ethereum in May 2024, then there are chances that some people might take legal action against the SEC after May.
Renowned Bitcoin maximalist and advisor to the president of El Salvador, Max Keiser, responded to speculations around ETF spot ETF rejection possibilities.
Max said that the SEC body is right to reject ETH spot ETF and also called ETH coin a Proof-of-stake (PoS) scam against all SEC’s requirements.
Read also: Global Economist claims Bitcoin ETF will badly crash Bitcoin & Microstrategy (MSTR) stock
Proof-of-stake (PoS) is a big road bump for ETH spot ETF approval chances
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