JPMorgan Expresses Doubts About Future Approval of Cryptocurrency ETFs by SEC
JPMorgan, the investment bank, has expressed its skepticism regarding SEC approval of ETFs for Solana and other cryptocurrencies, following the recent approval of Ethereum ETFs.
Nikolaos Panigirtzoglou, Managing Director and Global Market Strategist at JPMorgan, shared his reservations with The Block, stating that the SEC considers most cryptocurrencies as securities, which complicates the approval of new ETFs.
Analyzing the Current Regulatory Environment
The SEC’s decision to approve ETH ETFs was already complicated due to the ambiguity surrounding whether Ethereum should be considered a security or not.
We do not think that the SEC would go further by approving Solana or other token ETFs, given that the SEC has a stronger view (compared to Ethereum) that tokens outside of Bitcoin and Ethereum should be classified as securities.
According to Panigirtzoglou, the decision by the SEC to approve Ethereum ETFs was already on the edge, considering the ambiguity surrounding Ethereum’s status as a possible security.
He believes it is unlikely that the SEC will extend its approvals to other cryptocurrencies like Solana, which he believes are perceived even more clearly as securities compared to Ethereum. Panigirtzoglou emphasizes that without a legislative change in the U.S. reclassifying most cryptocurrencies as non-securities, it is unlikely that other crypto ETFs will be approved.
Recent Context of SEC Approvals
Last week, the SEC unexpectedly approved Ethereum Spot ETFs, a decision that several analysts have deemed politically motivated. This marked a sudden resumption of interactions with stakeholders after months of stalemate discussions.
Forms 19b-4 from eight applicants for Ethereum Spot ETFs – Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin – were approved on May 23. The S-1 registrations for these ETFs are still awaiting SEC approval for funds to begin trading, with trading debuts expected in the coming weeks.
