The United States Securities and Exchange Commission's recent Wells notice to Robinhood Crypto concerning alleged unregistered security offerings is unlikely to obstruct the potential approval of spot ether exchange-traded funds, according to JPMorgan.

"In our opinion, it does not look like the Wells notice should pose an obstacle to an eventual approval by the SEC of spot Ethereum ETFs, although perhaps not as soon as this month," JPMorgan analysts, led by Nikolaos Panigirtzoglou, wrote in a report on Wednesday. "The template is likely to be similar to bitcoin: with futures-based Ethereum ETFs already approved, the SEC (if it denies the approval of spot Ethereum ETFs) is likely to face a legal challenge and eventually lose."

Earlier this week, retail brokerage Robinhood said that its …