JPMorgan, a prominent global investment bank, has cast doubt on the possibility of the U.S. Securities and Exchange Commission (SEC) approving exchange-traded funds (ETFs) for cryptocurrencies like solana (SOL) or XRP, beyond the already approved bitcoin and ether ETFs. According to JPMorgan's analyst, the decision to approve ether ETFs is already questionable due to the uncertainty surrounding whether ethereum should be considered a security or not.
JPMorgan's managing director and global market strategist, Nikolaos Panigirtzoglou, expressed skepticism regarding the SEC's potential approval of solana or other token ETFs. He pointed out that the SEC holds a stronger belief, compared to ethereum, that tokens other than bitcoin and ethereum should be classified as securities.
Panigirtzoglou highlighted the contentious nature of the SEC's decision to approve ethereum ETFs, which some analysts believe may have been influenced by political factors. He explained that unless U.S. policymakers pass legislation to define most cryptocurrencies as non-securities, it is unlikely that the SEC will approve other spot cryptocurrency ETFs.
The approval of spot ether ETFs by the SEC came as a surprise to many in the crypto industry, including the issuers of these ETFs. Panigirtzoglou had estimated a 50% chance of approval before the SEC's decision. However, on May 23, the SEC approved eight 19b-4 forms for spot ether ETFs.
SEC Chairman Gary Gensler has consistently stated that most crypto tokens, except for bitcoin, should be considered securities. He has not explicitly confirmed whether ether falls into this category. It was recently revealed through a court document that the SEC initiated a formal investigation into ether as a potential security last year.
What are your thoughts on whether the SEC will approve solana ETFs or other spot crypto ETFs in the near future? Let us know in the comments section below.