JPMorgan does not foresee the SEC approving crypto ETFs like SOL and XRP Coin following spot Ethereum ETFs. Analyst Nikolaos Panigirtzoglou said this would be the case unless US policymakers pass a law declaring most cryptocurrencies non-securities.
Will SEC approve SOL, XRP Coin and other crypto ETFs?
cryptokoin.comAs you follow from, the SEC gave the green light to spot Ethereum ETFs with a surprise decision. Following this, crypto players turned their attention to crypto ETFs such as SOL and XRP Coin. However, JPMorgan is skeptical about the SEC approving SOL, XRP Coin and other crypto ETFs. Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, says he doubts the SEC will approve such funds. The reason is that the SEC sees most cryptocurrencies as securities. In this context, Panigirtzoglou makes the following statement:
We doubt. The SEC’s decision to approve ETH ETFs has already been slackened given the uncertainty over whether Ethereum will be classified as a security. Since the SEC has a stronger view (relative to Ethereum) that tokens other than Bitcoin and Ethereum should be classified as securities, we do not think the SEC will go further by approving Solana or other token ETFs.
According to Panigirtzoglou, the SEC could approve other crypto ETFs with one condition. For this, US politicians need to pass a law that recognizes that most cryptos are not securities. However, the strategist notes that no such legislation currently exists.
SEC approves spot Ethereum ETFs
Last week, the SEC abruptly approved spot Ethereum ETFs. Many analysts say this is a politically motivated decision. Because the SEC only re-engaged with stakeholders at the last minute, after months of negotiations. The SEC approved the 19b-4 forms of 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’ S-1 filings are still awaiting SEC approval before the funds can begin trading. Many analysts expect trading to begin in the coming weeks.
JPMorgan is not too optimistic about the SEC approving other crypto ETFs. However, some other analysts say the recent approval of spot Ethereum ETFs means the market may see more crypto ETFs tied to other cryptocurrencies and tokens. Last week, Standard Chartered’s Geoffrey Kendrick said he expects the SEC to approve Solana and XRP ETFs in 2025. Jaret Seiberg of TD Cowen suggested that the market could see more crypto ETFs within a year, including an ETF offering with a “basket of crypto tokens.”
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