JP Morgan believes Solana and other cryptocurrency ETFs are unlikely to gain regulatory approval

JP Morgan CEO and global market strategist Nikolaos Panigirtzoglou said ETFs for Solana (SOL) and other assets are unlikely to succeed.

In a statement to The Block on May 27, Panigirtzoglou said the SEC’s recent decision to approve Ethereum spot ETFs is “already forced.”

If the SEC considers ET a title or commodity is unclear despite approvals.

Panigirtzoglou said the lack of clarity cast doubt on other assets, saying:

“We do not think the SEC would go further than approving Solana or other token ETFs.”

He added that the SEC believes that tokens other than BTC and ETH should be classified as securities, a stronger position than that towards ETH itself.

Panigirtzoglou acknowledged that U.S. lawmakers could create legislation to classify most cryptocurrencies as non-securities, but said such legislation does not exist.

Others expect ETF SOL

Some commentators are more optimistic about the chances of a SOL ETF.

Cryptocurrency investor Brian Kelly believes the ETH ETF approvals could increase the Solana ETF’s chances of approval, but acknowledged that SOL’s status as a stock is an issue.

Bloomberg ETF Analyst James Seyffart expects a Solana ETF to do so succeed over the years with legislation such as FIT21, which will outline the securities and futures markets. He similarly recognized Solana’s security situation as a potential challenge.

Forecast market probabilities are low. Polymarket relationships an approximately 13% chance that the SEC will approve a Solana ETF by the end of 2024.

The SEC considers SOL a security

Regardless of future treatment, the SEC has previously identified it Solana and other altcoins as securities in various enforcement cases.

In his case against Coinbase, the SEC alleged that Solana was one of many tokens offered as an investment contract and security, in both past and present sales.

The regulator highlighted Solana Labs’ $23 million Simple Agreement for Future Tokens (SAFT) as an example of an offer and sale of securities. He also called SOL a security in cases against Binance and Kraken.

However, the SEC has not directly brought legal action against Solana Labs or related parties.

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Posted in: Solana, WE, Cryptocurrency, ETFs

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