JPMorgan has doubts about SEC approval of Solana ETFs, here’s why

JPMorgan is casting doubt on the approval of additional crypto exchange-traded funds (ETFs) following the approval of spot Ethereum ETFs by the Securities and Exchange Commission (SEC). What does this mean for the future of Solana and other crypto ETFs?

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JPMorgan’s position

According to Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, the investment bank is skeptical about the SEC’s approval of cryptocurrency ETFs like Solana, given their position that most cryptocurrencies should be considered securities. Panigirtzoglou stated that the approval of Ethereum ETFs was already a challenge due to the ambiguity over the classification of Ethereum as a security. It is unlikely that the SEC will go further by approving Solana or other token ETFs as they take a stricter stance on tokens outside of Bitcoin and Ethereum.

Possibility of approval

However, Panigirtzoglou notes that if U.S. policymakers eventually pass legislation stating that most cryptocurrencies are not securities, the SEC may be able to approve other crypto ETFs. However, no such legislation currently exists.

Approval of spot Ethereum ETFs

Recently, the SEC unexpectedly approved spot Ethereum ETFs, leading to speculation about further approvals of crypto ETFs. While JPMorgan is pessimistic about this possibility, other analysts have suggested that the approval of Ethereum ETFs could pave the way for more crypto ETFs tied to other cryptocurrencies and tokens.

Predictions from other analysts

Analysts such as Geoffrey Kendrick of Standard Chartered Bank and Jaret Seiberg of TD Cowen have predicted that the market could see Solana and XRP ETFs in the future, as well as other crypto ETFs. According to them, the approval of spot Ethereum ETFs could pave the way for a wider range of crypto ETFs in the near future.

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