JP Morgan Dismisses Solana (SOL) ETF Hopes as Unrealistic: Key Insights Revealed

  • Analysts at JP Morgan, an American multinational investment banking company, have tempered the rising expectations of a Solana ETF.
  • They cite the United States Securities and Exchange Commission’s (SEC) recent enforcement actions on the crypto industry as a major barrier to the establishment of a Solana ETF.
  • “We don’t think the SEC would go even further by approving Solana or other token ETFs,” said Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan.

JP Morgan analysts cast doubt on the approval of a Solana ETF by the SEC, citing regulatory challenges and recent enforcement actions.

Solana ETF Hopes Dashed By JP Morgan Analysts

JP Morgan has remained doubtful of the potential approval of a Solana ETF by the US SEC. Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan, said in a statement to TheBlock, that he was skeptical about the SEC authorizing more cryptocurrency ETFs after it approved Spot Bitcoin ETFs and Ethereum Spot ETFs this year.

SEC’s Stance on Cryptocurrencies

Panigirtzoglou dismissed the growing expectations of a Solana ETF, pinpointing the ambiguity surrounding the SEC’s seemingly hostile stance on cryptocurrencies. He disclosed that the regulator’s implied classification of cryptocurrencies as securities could pose a significant challenge to the establishment of a Solana ETF. “We don’t think the SEC would go even further by approving Solana or other token ETFs,” Panigirtzoglou stated.

The analyst further affirmed that the SEC will not approve any tokens outside Bitcoin and Ethereum, suggesting that the regulator believes that altcoins other than Bitcoin and Ethereum should be classified as securities.

Standard Chartered Analysts Expect Crypto ETFs By 2025

In another statement to TheBlock, analysts at international cross-border bank, Standard Chartered have maintained a more optimistic outlook on the potential establishment 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.

Potential Pathways for Approval

He suggested that the approval of an Ethereum Spot ETF indicates that Ethereum is not classified as a security by the SEC. As such, other Ethereum-like cryptocurrencies, such as Solana and XRP, which the SEC previously denoted as securities, may also be categorized as non-securities.

Kendrick explained that the core technologies of Ethereum and other altcoins in the crypto market are “so similar,” that it would potentially pose a challenge 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.

Conclusion

While JP Morgan analysts remain skeptical about the approval of a Solana ETF due to the SEC’s stringent stance on cryptocurrencies, Standard Chartered analysts are more optimistic, predicting potential approvals by 2025. The differing perspectives highlight the ongoing regulatory uncertainties and the evolving landscape of cryptocurrency ETFs.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Whale Activity Soars as 721,294 LINK Withdrawn from Binance: A Deep Dive into Recent Trends

According to COINOTAG News on August 17th, significant whale...

Whale Alert: 7,866 ETH Withdrawn from Kraken – Current Holdings Total 16,872 ETH Worth $75.35 Million

On August 17th, **COINOTAG News** reported a significant movement...

Solana Leads the Pack: Top 5 Blockchains by Active Addresses in the Last Week

According to recent data from Nansen, the crypto landscape...

Solana’s LIGHT Token Hits All-Time High of $1.35 Billion with 62.29% Surge

According to COINOTAG News on August 17th, recent market...

Bitcoin Dominates as Cryptocurrency Fear and Greed Index Surges to 64 Amid Growing Market Greed

On August 17th, COINOTAG reported a notable shift in...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img