JPMorgan has raised doubts about the Securities and Exchange Commission (SEC) approving Solana (SOL) and other crypto ETFs. The regulator’s skepticism follows recent approval of Ethereum ETFs in the United States.
Reasons Why SEC Might Not Approve Other Crypto ETFs
Nikolaos Panigirtzoglou, the Managing Director and global market strategist at JPMorgan cited the classification of most crypto as securities by the SEC as a reason why the SEC may not approve other ETFs.
“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,” noted Panigirtzoglou.
The managing director says the regulator may have a change of heart if US policy makers pass legislation deeming most crypto are not securities. At the moment, such laws do not exist and only time will tell if policy makers would be willing to pass one.
In the meantime, some other analysts have a contrary opinion to JPMorgan’s. They claim more crypto assets could get regulatory clearance on the heels of the ETH ETFs similar to what transpired upon Bitcoin ETF approvals.
Specifically, Geoffrey Kendrick of Standard Chartered Bank’s said he expects the approval of Solana and XRP ETFs in 2025. Echoing this sentiment is Brian Kelly, the Founder and CEO of BKCM LLC, who stated that Solana could be the next crypto for spot ETF approval.
Overview of the Ethereum ETF
The approval of eight spot Ethereum ETFs on Thursday is historic as it places the cryptocurrency among others that can be traded by institutional investors.
The asset managers that saw their ETH ETF products approved include VanEck, BlackRock, Fidelity Investments, Grayscale Investments, Ark 21Shares, Invesco Galaxy, Franklin Templeton, and Bitwise.
It is worth noting that these asset managers had to make certain compromises like removing their staking options prior to the SEC’s approval.
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