JPMorgan Casts Doubt on SEC Approval of Solana-Based ETFs

The U.S. Securities and Exchange Commission (SEC) is unlikely to approve spot exchange-traded funds (ETFs) based on Solana or other cryptocurrencies. This was stated by JPMorgan analyst Nikolaos Panigirtzoglou, according to The Block.

“We have doubts. The SEC’s decision to approve an ETF has been delayed, given the uncertainty about whether Ethereum should be classified as a security or not,” he explained.

The expert highlighted the regulator’s stance, which considers most digital assets as securities. New legislation could change the situation, but it currently does not exist.

On May 23, the SEC approved 19b-4 applications from issuers of spot exchange-traded funds based on Ethereum. At the time, JPMorgan described the agency’s decision as political ahead of the U.S. presidential elections.

The new instruments will only be able to trade after the Commission signs off on S-1 form statements. According to Bloomberg’s exchange analyst James Seyffart, this could take “weeks or months.”

A quick note, @EricBalchunas and increased odds to 75% for spot #Ethereum ETF approvals. But that’s for the 19b-4 May 23rd deadline (@vaneck_us‘s deadline) We also need S-1 approvals. It could be weeks to months before we see S-1 approvals and thus a live Eth ETF h/t @NateGeraci

— James Seyffart (@JSeyff) May 20, 2024

Following this, Jeffrey Kendrick, head of research at Standard Chartered, suggested a new phase for crypto-ETFs in 2025. In his view, SOL and XRP are next in line.

Matrixport co-founder Daniel Yan also identified Solana as a new contender for launching exchange-traded funds.

Arthur Cheong, founder and CEO of DeFiance Capital, predicted Ethereum could rise to $4500 even before the launch of spot ETFs based on the cryptocurrency.