JPMorgan Doubts SEC Approval for Solana ETFs

With Ethereum ETFs officially permitted, JPMorgan is dubious about the United States Securities and Exchange Commission authorizing Solana and other crypto exchange-traded funds.

Given its posture that most cryptocurrencies are securities, Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, told The Block that the investment bank asked whether the SEC would approve such funds.

“We have doubts. Given the uncertainty around whether Ethereum should be categorized as a security or not, the SEC’s decision to authorize ETH ETFs already seems stretched. “Given the SEC’s stronger (compared to Ethereum’s) view that tokens outside Bitcoin and Ethereum should be categorized as securities, we do not believe the SEC would go even further by authorizing Solana or other token ETFs.” Panigirtzoglou added.

Panigirtzoglou said the SEC might approve other crypto ETFs unless, of course, US legislators finally create laws concluding most cryptocurrencies are not securities. But just now, he continued, no such legislation exists.

Future Crypto ETF Approvals and Market Predictions

Following months of stalling negotiations, the SEC only re-engaged with stakeholders at the last minute, so last week it suddenly approved spot Ethereum ETFs. Several analysts said this was a politically motivated action.

In one omnibus decision on May 23, the SEC authorized 19b-4 forms of eight-spot Ethereum ETF applicants: Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. For those ETFs, S-1 registrations under SEC sign-off are still pending, so the funds might start trading. A number of analysts predict trade beginning in the next few weeks.

Although JPMorgan is not very hopeful about the SEC allowing further crypto ETFs, some other analysts have claimed the recent clearing of spot Ethereum ETFs indicates the market may see more crypto ETFs linked with other cryptocurrencies and tokens.

Geoffrey Kendrick of Standard Chartered Bank said last Thursday he expects Solana and XRP ETF approvals in 2025. According to Jaret Seiberg of TD Cowen, within a year, the market may see more crypto ETFs, including one with a “basket of crypto tokens.”