Key Points
- “Crypto Mom” Optimistic: Commissioner Hester Pierce believes the SEC can approve spot Ethereum ETFs without the need for lawsuits or court rulings.
- Grayscale Ruling Influence: The recent approval of spot Bitcoin ETFs followed a court order to reevaluate Grayscale’s application, setting a precedent for spot ETFs.
- JPMorgan downgrades Coinbase due to concerns about Bitcoin ETF adoption and the U.S. market’s readiness.
Crypto Mom’s Crystal Ball: No Lawsuits Needed for Ethereum ETFs!
Commissioner Hester Pierce, affectionately known as “Crypto Mom,” has expressed confidence that the United States Securities and Exchange Commission (SEC) can approve pending spot Ethereum exchange-traded funds (ETFs) without resorting to lawsuits or court rulings.
In an interview with Coinage, she emphasized the need for the SEC to treat spot Ethereum ETFs similarly to other exchange-traded products, eliminating the necessity for legal directives.
Her optimism stems from the recent approval of spot Bitcoin ETFs, which followed a court ruling that ordered the SEC to reevaluate its approach after rejecting Grayscale’s Bitcoin Investment Trust (GBTC) conversion proposal.
Pierce believes that the SEC should apply standard considerations to spot Ethereum ETF applications, avoiding arbitrary and capricious decisions.
This approach aims to provide a consistent and transparent regulatory framework for approximately seven spot Ethereum ETF applications currently under review.
Is Coinbase’s Crypto Party Over?
JPMorgan Downgrades Coinbase Over ETF Concerns
In a surprising turn of events, JPMorgan Chase & Co. has downgraded its assessment of Coinbase Global Inc. due to reservations about the readiness of the U.S. market for recently approved spot Bitcoin exchange-traded funds (ETFs).
- Concerns about Slower ETF Adoption: JPMorgan predicts that the adoption of Bitcoin ETFs will be slower than expected. This could potentially impact Coinbase’s revenue and result in a significant 38% drop in its stock price.
- Change in JPMorgan’s Stance: This represents a notable shift from JPMorgan’s previous optimistic outlook. Kenneth Worthington, their lead analyst, now sees challenges ahead for Coinbase.
- Price Target: JPMorgan’s cautious approach includes maintaining a price target of $80 for Coinbase stock, suggesting a projected 38% decline over the next year.
- Worries About Market Sentiment: The bank is concerned that disappointment in ETF fund flows might negatively affect overall market sentiment. This could lead to lower cryptocurrency prices, reduced trading activity, and decreased additional income for platforms like Coinbase.
Different Perspectives:
It’s important to mention that not all experts share JPMorgan’s bearish view. Investment firm Wedbush believes that Coinbase is likely to benefit from the SEC’s approval of spot Bitcoin ETFs, offering a more optimistic perspective on the situation.
Productive Place 
Leave a comment