XRP, SOL, SHIB ETF’s Unlikely to See SEC Approval: JPMorgan

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As a seasoned crypto investor, I’ve witnessed the ebb and flow of regulatory approval for cryptocurrency-related products, including ETFs. JPMorgan’s latest stance on Ethereum’s approval being “stretched” and their skepticism towards Solana (SOL) and Shiba Inu (SHIB) ETFs is a common theme among traditional financial institutions.

Recent progress has been made in the realm of crypto Exchange-Traded Funds (ETFs), with the green light given to eight Ethereum-based ETFs. Nevertheless, JPMorgan expresses skepticism regarding the US Securities and Exchange Commission (SEC) granting approval for Solana (SOL), XRP, and Shiba Inu (SHIB) ETFs.

JPMorgan Stance on Crypto ETF’s Approvals

Nikolaos Panigirtzoglou, JPMorgan’s managing director and global market strategist, expressed his view that the SEC’s approval of Ethereum ETFs seemed overly generous, considering the ongoing controversy surrounding Ethereum’s classification as a security.

According to Panigirtzoglou’s perspective, since the Securities and Exchange Commission (SEC) views most cryptocurrencies as securities, it is uncertain that ETFs based on Solana and Shiba Inu will receive approval in the near future.

“He pointed out that the SEC is unlikely to endorse Solana or similar token ETFs, considering the regulatory body’s more forceful stance on classifying tokens other than Bitcoin and Ethereum as securities.”

According to Panigirtzoglou’s perspective, the probability of additional crypto products gaining SEC approval hinges on US lawmakers passing laws that classify most cryptocurrencies as non-securities. However, such legislation currently lacks legislative support.

Are XRP, SHIB ETF’s Looming?

Simultaneously, the Shiba Inu community is making headway in developing a unique ETF for their cryptocurrency. As reported by Shytoshi Kusama, a key figure in the Shiba Inu ecosystem, took to social media platform X to applaud Ethereum’s ETF approval and subtly propose the idea of a SHIB-centered ETF.

As a researcher, I’ve noticed an intriguing development in the crypto world on February 25. A petition was submitted on change.org, appealing directly to Grayscale Investments CEO Michael Sonnenshein, proposing the creation of a Shiba Inu-focused Exchange-Traded Fund (ETF). This call comes amidst growing market interest in crypto ETFs, with Solana and XRP being notable examples.

Investors in Ripple (XRP) keep a close eye on the unfolding SEC case involving their company, as this legal battle significantly impacts the future creation of XRP-linked financial instruments. Despite some uncertainties surrounding an XRP Exchange-Traded Fund (ETF), Brad Garlinghouse, Ripple’s CEO, remains optimistic about its prospects.

Some analysts, including Geoffrey Kendrick from Standard Chartered, argue that the Securities and Exchange Commission (SEC) may not classify tokens such as XRP as securities due to their technological resemblance to Ethereum.

Will there be an XRP ETF in 2025 ?
— Vet (@Vet_X0) May 24, 2024

At the same time, following Ethereum ETF’s acceptance, discussions about potential Ethereum counterparts for other cryptocurrencies, including Solana and Ripple (XRP), have emerged. Results from a survey led by an XRP Ledger validator indicated that approximately two-thirds of the respondents anticipate the Securities and Exchange Commission (SEC) to authorize an XRP ETF before 2025. This perspective is reinforced by Standard Chartered’s prediction, which anticipates SEC approval for both Solana and Ripple ETFs during the same year.

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2024-05-27 19:22