JPMorgan Chase expresses doubt on whether the US SEC will approve Solana and other cryptocurrency ETFs

JPMorgan expressed doubts about SEC approval of Solana and other cryptocurrency exchange-traded funds (ETFs).

JPMorgan's Managing Director and Global Market Strategist Nikolaos Panigirtzoglou expressed the bank's concerns to The Block media, emphasizing 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 over whether Ethereum should be classified as a security is ongoing.

SEC's Strict Stance on Cryptocurrency

"We doubt the SEC will approve a Solana or any other token ETF," Panigirtzoglou said. He noted that the SEC has a strong position categorizing most tokens, other than Bitcoin and Ether, as securities. This strict view makes further approvals unlikely unless there is new legislation redefining these classifications.

Panigirtzoglou pointed out that legislative changes could alter the SEC's current course. If U.S. policymakers pass laws deeming most cryptocurrencies not securities, the SEC may consider approving more cryptocurrency ETFs. However, he emphasized that no such legislation currently exists.

Three common questions after the SEC approves an ETH ETF in the U.S.

Analysts' Expectations for an Ethereum ETF

The S-1 registration for the approved ETF still requires final signing by the SEC, which is necessary for trading to commence. Analysts anticipate trading may start in the coming weeks.

Differing Views on Future Cryptocurrency ETF Approvals

While JPMorgan remains cautious, other analysts are more optimistic about the future of cryptocurrency ETFs. For example, Geoffrey Kendrick from Standard Chartered Bank predicts that Solana and XRP ETFs may be approved by 2025. Similarly, Jaret Seiberg from TD Cowen points out that the market could see more cryptocurrency ETFs, including those featuring a "cryptocurrency basket," within a year.