Analysts at J.P. Morganan American multinational investment bank, have tempered the growing expectations of a Solana ETF. They cite recent enforcement actions by the United States Securities and Exchange Commission (SEC) on the crypto industry as a major obstacle to the creation of a Solana ETF.
Solana ETF hopes dashed by JP Morgan analysts
JP Morgan remains doubtful about the potential approval of a Solana ETF by the American SEC. Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan, said in a statement to TheBlock that he was skeptical the SEC would allow more cryptocurrency ETFs after approving the Spot Bitcoin ETF and Ethereum Spot ETF This year.
Related reading: Dogecoin and Shiba Inu fall behind: here are the best Meme Coin artists from the past week
Panigirtzoglou dismissed growing expectations for a Solana ETF, highlighting ambiguity surrounding the apparent hostile stance on cryptocurrencies. He revealed that the regulator’s implicit classification of cryptocurrencies as securities could pose a significant challenge to the creation of a Solana ETF. “We do not believe the SEC would go even further in approving Solana or other tokenized ETFs,” Panigirtzoglou said.
The analyst further claimed that the SEC would not approve any token outside Bitcoin and Ethereum, suggesting that the regulator believes that altcoins other than Bitcoin and Ethereum should be classified as securities.
Following the Approval of Spot Bitcoin ETFs on January 10, many predicted that Ethereum would be next to get an ETF. Faithful to predictionThe US SEC recently approved Ethereum Spot ETFs on May 23, after months of delays in several applications from several asset management companies, including black rockFidelity, Bitwise and others.
Now, with the approval of Spot Bitcoin and Ethereum Spot ETFs, expectations for more crypto ETFs are high, with Solana and XRP being the first choice among other digital currencies.
Panigirtzoglou said the only way the SEC could approve a Solana ETF That’s if U.S. policymakers pass legislation deeming cryptocurrencies as non-securities. However, to date no such legislation has been approved.
Standard Chartered Analysts Expect Crypto ETFs by 2025
In another statement to TheBlock, analysts from a cross-border international bank, Chartered standard maintained a more optimistic view on the potential creation of a Solana ETF. Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicted that the SEC could approve other crypto ETFs including a Solana ETF by 2025.
He suggested that the approval of an Ethereum Spot ETF indicates that Ethereum is not classified as a security by the SEC. Thus, other Ethereum-like cryptocurrencies, such as Solana and SEC previously designated as securitiescan also be classified as non-titles.
Kendrick explained that the core technologies of Ethereum and other altcoins in the crypto market are “so similar” that it would potentially be difficult for the SEC to legally claim that the other cryptocurrencies were securities. This similarity could ultimately pave the way for the regulatory agency to consider approving other crypto ETFs.
Featured image created with Dall.E, chart from Tradingview.com
