As an analyst with a background in financial regulation and experience following the cryptocurrency industry, I share JP Morgan’s skepticism regarding the imminent approval of a Solana ETF by the US SEC. The SEC’s recent actions against crypto companies and its classification of cryptocurrencies as securities create significant barriers for new crypto ETFs, particularly those based on altcoins like Solana.
As an analyst at JP Morgan, I would express it this way: I, along with my colleagues at JP Morgan, have cautioned against overly optimistic projections for a Solana Exchange-Traded Fund (ETF). Our rationale stems from the SEC’s recent crackdown on the crypto industry, which we believe poses a significant hurdle in bringing a Solana ETF to fruition.
Solana ETF Hopes Dashed By JP Morgan Analysts
As a market analyst at JP Morgan, I’ve expressed my skepticism regarding the Securities and Exchange Commission (SEC) approving a Solana exchange-traded fund (ETF). Following the SEC’s approval of Spot Bitcoin ETFs and Ethereum Spot ETFs this year, I believe it may be hesitant to authorize more cryptocurrency ETFs.
Panigirtzoglou expressed his reservations about the increasing hype surrounding a potential Solana ETF, highlighting the uncertainty caused by the Securities and Exchange Commission’s (SEC) perceived unfavorable stance on cryptocurrencies. He revealed that the SEC’s suggested categorization of cryptocurrencies as securities could present a substantial hurdle for the creation of a Solana ETF. “We don’t believe the SEC will take things any further by endorsing a Solana or other token ETF,” Panigirtzoglou remarked.
The analyst reiterated that the Securities and Exchange Commission (SEC) is unlikely to endorse any cryptocurrencies beyond Bitcoin and Ethereum. This implies that the SEC considers most other cryptocurrencies, or altcoins, as securities under its regulatory framework.
After the green light was given for Spot Bitcoin ETFs on January 10, there were expectations that Ethereum would be the next to secure an ETF. Consistent with these expectations, the US Securities and Exchange Commission (SEC) recently granted approval for Ethereum Spot ETFs on May 23. This decision came following the postponement of various applications from notable asset management firms such as BlackRock, Fidelity, and Bitwise for several months.
With the recent approval of Spot Bitcoin and Ethereum ETFs, there is growing anticipation for the introduction of similar products based on other cryptocurrencies. Amongst the contenders, Solana and Ripple (XRP) are currently generating the most buzz.
According to Panigirtzoglou, the Securities and Exchange Commission (SEC) will only give its approval for a Solana exchange-traded fund (ETF) if U.S. lawmakers pass legislation that classifies cryptocurrencies as non-securities. At present, no such legislation has been enacted.
Standard Chartered Analysts Expect Crypto ETFs By 2025
According to Standard Chartered’s analysts, who spoke with TheBlock, they remain hopeful that a Solana Exchange-Traded Fund (ETF) will come into existence. Geoffrey Kendrick, the head of forex and digital assets research at Standard Chartered Bank, anticipates that regulatory approval from the Securities and Exchange Commission (SEC) for this and other crypto ETFs could occur as early as 2025.
The approval of an Ethereum Spot ETF implies that the SEC does not consider Ethereum a security. If this holds true for Ethereum, then cryptocurrencies like Solana and XRP, which were previously labeled as securities by the SEC, might also be classified as non-securities.
Kendrick pointed out that the fundamental technologies underlying Ethereum and many other cryptocurrencies in the market share striking resemblances, which might complicate the SEC’s efforts to classify these digital assets as securities. This sameness could open up possibilities for the regulatory body to entertain applications for crypto ETFs in the future.
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2024-05-29 23:11