Analysts at JP Morgan Believe Solana ETF Approval Unlikely
JP Morgan analysts have expressed skepticism about the possibility of the United States Securities and Exchange Commission (SEC) approving a Solana exchange-traded fund (ETF). With recent approval of Spot Bitcoin ETFs and Ethereum Spot ETFs, the analysts at JP Morgan believe that the SEC’s actions in the crypto industry may pose barriers to the establishment of a Solana ETF.
- Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan, remains doubtful about the SEC authorizing additional cryptocurrency ETFs.
- He cites the SEC’s ambiguous stance on cryptocurrencies as a major concern for the approval of a Solana ETF.
- Panigirtzoglou stated that the SEC’s implied classification of cryptocurrencies as securities could hinder the establishment of a Solana ETF.
Optimistic Outlook from Standard Chartered Analysts
On the other hand, analysts at Standard Chartered Bank have a more positive outlook on the potential approval of a Solana ETF. Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicts that the SEC could approve other crypto ETFs, including a Solana ETF, by 2025.
- Standard Chartered analysts believe that the approval of an Ethereum Spot ETF indicates that Ethereum is not classified as a security by the SEC.
- Kendrick suggests that other Ethereum-like cryptocurrencies, such as Solana and XRP, may also be considered non-securities by the SEC.
- He explains that the similarities in core technologies between Ethereum and other altcoins could pose a challenge for the SEC to classify them as securities.
Possible Legislative Changes Impacting Solana ETF Approval
Panigirtzoglou from JP Morgan mentioned that the only way the SEC would approve a Solana ETF is if US policymakers pass legislation deeming cryptocurrencies as non-securities. However, as of now, no such legislation has been approved.
Future of Crypto ETFs
With the approval of Spot Bitcoin ETFs and Ethereum Spot ETFs, the market is anticipating more crypto ETFs in the future, with Solana and XRP among the top contenders. While JP Morgan remains cautious about a Solana ETF, Standard Chartered analysts are more optimistic about its approval by 2025.
Hot Take: Implications for Solana ETF Approval
Investors and cryptocurrency enthusiasts eagerly await regulatory decisions on the establishment of a Solana ETF. The differing perspectives from JP Morgan analysts and Standard Chartered analysts highlight the uncertainties and challenges surrounding the approval process. As discussions on the classification of cryptocurrencies continue, the future of a Solana ETF remains uncertain, dependent on regulatory actions and potential legislative changes.
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