JPMorgan Skeptical of SEC Approving Solana and Other Crypto ETFs Following Ethereum Approval

JPMorgan Casts Doubt on SEC Approving Solana ETFs Following Ethereum Approval

In a surprising move last week, the United States Securities and Exchange Commission (SEC) approved spot Ethereum exchange-traded funds (ETFs), sparking speculation about the potential approval of other cryptocurrency ETFs. However, JPMorgan remains skeptical about the SEC greenlighting Solana and other token ETFs in the near future.

Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, expressed doubts about the SEC’s willingness to approve additional crypto ETFs, citing the regulatory body’s stance on classifying most cryptocurrencies as securities.

“We doubt. The decision by the SEC to approve ETH ETFs is already stretched given the ambiguity about whether Ethereum should be classified as security or not. We don’t think the SEC would go even further by approving Solana or other token ETFs given the SEC has stronger (relative to Ethereum) opinion that tokens outside bitcoin and Ethereum should be classified as securities,” Panigirtzoglou said.

Panigirtzoglou suggested that unless U.S. policymakers introduce legislation clarifying that most cryptocurrencies are not securities, the SEC is unlikely to approve other crypto ETFs. Currently, no such legislation exists, according to Panigirtzoglou.

The recent approval of spot Ethereum ETFs by the SEC has raised hopes for the potential approval of ETFs tied to other cryptocurrencies and tokens. Analysts like Standard Chartered Bank’s Geoffrey Kendrick and TD Cowen’s Jaret Seiberg have predicted the approval of Solana, XRP, and even a “basket of crypto tokens” ETF in the coming years.

While some analysts are optimistic about the future of crypto ETFs, JPMorgan’s skepticism highlights the uncertainty surrounding regulatory approval in the crypto space. As the market eagerly awaits further developments, the SEC’s decision on Solana and other token ETFs remains uncertain.

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