According to a report from “The Block”, analysts at JPMorgan pointed out that the recent Wells notice issued by the Securities and Exchange Commission (SEC) to Robinhood regarding “alleged unregistered securities trading” is unlikely to hinder the potential approval of Ethereum spot ETFs. If the SEC refuses to approve these ETFs, they may face legal challenges and lose.
Earlier this week, Robinhood claimed that its cryptocurrency division had received a Wells notice from the SEC, indicating that regulators are prepared to take enforcement action against the company for alleged securities violations.
According to JPMorgan analysts, the Wells notice appears to be an attempt by the SEC to further strengthen its position that all cryptocurrencies other than Bitcoin and Ethereum should be classified as securities. However, the SEC has not yet clearly stated whether Ethereum is indeed a security. When asked by the media if the Wells notice implies this, Nikolaos Panigirtzoglou stated:
Furthermore, the JPMorgan analysts also added that even if the Ethereum spot ETF is not approved this month, it is “unlikely to be a huge negative”. The market seems to have already discounted the expectation of approval this month, as evidenced by the trend of Grayscale Ethereum Trust trading at a discount.