Doubts Arise as JPMorgan Chase Questions SEC Approval for Solana and Other Cryptocurrency ETFs in the United States
JPMorgan Doubts SEC Approval of Solana and Other Crypto ETFs
JPMorgan’s managing director and global market strategist, Nikolaos Panigirtzoglou, expressed the bank’s skepticism towards the approval of cryptocurrency exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). Panigirtzoglou emphasized the SEC’s strict stance on cryptocurrencies. According to him, 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 Ethereum ETF
Different Opinions on Future Approval of Crypto ETFs
“We doubt whether the SEC will approve an ETF for Solana or any other token,” stated Panigirtzoglou. He pointed out that the SEC holds a strong position in classifying most tokens (except for 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 that determine most cryptocurrencies are 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 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 commence. Analysts expect trading to begin 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 predicts that Solana and XRP ETFs may be approved by 2025. Similarly, Jaret Seiberg of TD Cowen suggests that the market could see more cryptocurrency ETFs within a year, including ETFs that include a “cryptocurrency basket.”
SEC
Solana
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