JPMorgan doubts SEC approval for Solana and Crypto ETFs

JPMorgan has expressed doubts about the SEC’s inclination to approve additional crypto ETFs, especially after giving the green light to Ethereum ETFs. SEC clearance is unlikely until lawmakers declare that the majority of cryptocurrencies are not securities, according to JPMorgan analyst Nikolaos Panigirtzoglou.

SEC Position Regarding Crypto ETFs

Panigirtzoglou also pointed out that the SEC is not very aggressive and supported its actions by saying that it is still unclear whether Ethereum is a security. He noted that because other tokens outside of BTC and ETH are much more critical than Solana, the SEC may not give the green light to Solana or other tokenized ETFs.

A barrier to SEC approval of additional crypto ETFs is the lack of legislation deeming most cryptocurrencies non-securities. Panigirtzoglou suggested that such legislation could change the landscape and pave the way for broader approval.

Analyst Projections and Market Outlook

Despite JPMorgan’s skepticism, other analysts predict potential expansion of the crypto-ETF market. Standard Chartered Bank’s Geoffrey Kendrick predicts Solana and XRP ETF approvals by 2025.

Additionally, TD Cowen’s Jaret Seiberg suggests the possibility of more crypto ETF offerings within a year, including those encompassing a variety of crypto tokens. JPMorgan remains cautious about SEC approval of Solana and other crypto ETFs, analysts’ differing opinions indicate a dynamic and evolving landscape in the crypto market.

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