JPMorgan Doubts SEC Approval of Solana and Other Cryptocurrency Exchange-Traded Funds (ETFs)
Nikolaos Panigirtzoglou, Managing Director and Global Market Strategist at JPMorgan, expressed the bank’s doubts to the media outlet The Block regarding the SEC’s approval of cryptocurrency ETFs. Panigirtzoglou emphasized the SEC’s strict stance on cryptocurrencies. According to Panigirtzoglou, the approval of an Ethereum ETF by the SEC is already a breakthrough, as the debate on whether Ethereum should be classified as a security is still ongoing.
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SEC’s Strict Position on Cryptocurrencies
Analysts’ Expectations for an Ethereum ETF
Different Opinions on Future Approval of Cryptocurrency ETFs
“We doubt whether the SEC will approve a Solana or other token ETF,” said Panigirtzoglou. He pointed out that the SEC holds a strong position in classifying most tokens (except Bitcoin and Ether) as securities. This strict viewpoint makes further approvals unlikely unless there is new legislation redefining these classifications.
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Panigirtzoglou noted that legislative changes could alter the SEC’s current course. If US policymakers pass laws recognizing most cryptocurrencies as not securities, the SEC may consider approving more cryptocurrency ETFs. However, he emphasized that such legislation does not currently exist.
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Three Common Questions After the US SEC Approves ETH ETF
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The approved ETF’s S-1 registration still requires final signing by the SEC, which is necessary for trading to begin. Analysts expect trading to commence in the coming weeks.
While JPMorgan remains cautious, other analysts are more optimistic about the future of cryptocurrency ETFs. For example, Geoffrey Kendrick of Standard Chartered Bank predicts that Solana and XRP ETFs could be approved by 2025. Similarly, Jaret Seiberg of TD Cowen points out that the market may see more cryptocurrency ETFs, including those that include a “crypto portfolio,” within a year.
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Solana
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