Analysis: JP Morgan Casts Doubt on Solana ETF Possibility Due to SEC Actions

JP Morgan analysts have expressed skepticism regarding the likelihood of a Solana ETF being approved, attributing their doubts to recent regulatory actions by the United States Securities and Exchange Commission (SEC) concerning the cryptocurrency industry.

JP Morgan Questions Feasibility of Solana ETF

In light of the SEC’s approval of Spot Bitcoin ETFs and Ethereum Spot ETFs earlier this year, JP Morgan’s managing director and global market strategist, Nikolaos Panigirtzoglou, has voiced reservations about the potential authorization of a Solana ETF. He highlighted the SEC’s recent enforcement measures in the crypto space as a key hurdle.

Pointing to the SEC’s unclear stance on cryptocurrencies and its implied view of them as securities, Panigirtzoglou cast doubt on the possibility of a Solana ETF gaining approval. According to him, the SEC is unlikely to extend approval beyond Bitcoin and Ethereum, indicating a reluctance to classify other altcoins as non-securities.

Despite speculations surrounding the approval of additional crypto ETFs following the endorsement of Bitcoin and Ethereum products, Panigirtzoglou believes that legislative action designating cryptocurrencies as non-securities is necessary for a Solana ETF to be considered.

Standard Chartered Analysts Offer More Positive Outlook

Contrasting JP Morgan’s stance, analysts at Standard Chartered Bank anticipate broader crypto ETF approvals, including a potential Solana ETF by 2025. Geoffery Kendrick, the bank’s head of forex and digital assets research, suggested that the SEC’s approval of an Ethereum Spot ETF signifies a shift away from classifying Ethereum as a security, potentially benefiting cryptocurrencies like Solana and XRP.

Kendrick noted the similarities in core technologies between Ethereum and other altcoins, making it challenging for the SEC to maintain a securities classification for those assets. He emphasized that this resemblance could lead to increased consideration and approval of various crypto ETFs by regulatory authorities.