JPMorgan Skeptical of SEC Nod for Crypto ETFs, Including Solana

JPMorgan is doubtful that the United States Securities and Exchange Commission (SEC) will approve exchange-traded funds (ETFs) for Solana (SOL) and other cryptocurrencies following the approval of Ethereum (ETH) ETFs.

Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, expressed skepticism, noting the SEC’s stance that most cryptocurrencies are securities.

“We doubt the SEC will approve such funds,” Panigirtzoglou says. “The decision to approve ETH ETFs is already stretched, given the ambiguity about whether Ethereum should be classified as a security. We don’t think the SEC would go further by approving Solana or other token ETFs, as it views tokens outside of Bitcoin and Ethereum more strongly as securities.”

Panigirtzoglou mentioned that unless U.S. policymakers pass legislation classifying most cryptocurrencies as non-securities, the SEC is unlikely to approve other crypto ETFs. Currently, no such legislation exists.

Recently, the SEC approved spot Ethereum ETFs, with some analysts suggesting the decision was politically motivated due to last-minute stakeholder engagement after months of stalled conversations.

The SEC approved 19b-4 forms for eight spot Ethereum ETF applicants—Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin—in a single omnibus order on May 23.

These ETFs still require S-1 registration approval from the SEC before trading can commence, which analysts expect to happen in the coming weeks.

While JPMorgan remains pessimistic about the approval of other crypto ETFs, some analysts believe the recent Ethereum ETF approvals could pave the way for ETFs linked to other cryptocurrencies.

Geoffrey Kendrick from Standard Chartered Bank anticipates Solana and XRP ETFs could be approved by 2025. Jaret Seiberg from TD Cowen predicts the market could see more crypto ETFs, including those offering a “basket of crypto tokens,” within a year.

Image Credit: Shutterstock