ETFs
JPMorgan Questions SEC’s Crypto ETF Expansion Plans: The Block
JPMorgan has expressed skepticism that the U.S. Securities and Exchange Commission (SEC) will approve more cryptocurrency exchange-traded funds (ETFs), The Block reported.
The SEC last week approved Ethereum spot ETFs, which had initially fueled optimism among investors and analysts.
JPMorgan’s Nikolaos Panigirtzoglou, managing director and global market strategist, said the regulator considers most cryptocurrencies to be securities, casting doubt on additional crypto ETF approvals.
“The SEC’s decision to approve ETH ETFs is already broad given the ambiguity over whether Ethereum should be classified as a security or not,” Panigirtzoglou told The Block.
“We do not believe the SEC would go even further in approving Solana or other tokenized ETFs given that the SEC has a stronger view (compared to Ethereum) that tokens outside of Bitcoin and Ethereum should be classified as titles.”
The significance of this development lies in its potential influence on the cryptocurrency market, as ETF approvals are often linked to an increase in institutional investment and market stability.
Additionally, the SEC’s decisions are indicative of the evolving regulatory environment for digital assets.
Following the SEC’s approval of Ethereum ETFs, the crypto market has seen an uptrend with Solana’s value approaching US$170.
Financial institutions like Standard Chartered have predicted that the SEC’s recent actions could lead to new ETF approvals, possibly for Solana and XRP, by 2025.
Despite JPMorgan’s caution, the market reacted positively to the SEC’s decision regarding Ethereum ETFs, with US Bitcoin ETFs seeing favorable inflows, reflecting renewed investor confidence.
The SEC’s green light for Forms 19b-4 for eight Ethereum ETF applicants laid the groundwork for the upcoming start of trading, subject to the SEC’s final approval of the S-1 filings.