ETFs
JPMorgan skeptical of SEC approval of Solana and other crypto ETFs
May 27, 2024 4:00 p.m. | 2 minutes of reading
J.P. Morgan casts significant doubt on SEC approval of additional cryptocurrency ETFs beyond Ethereum (CRYPTO: ETH), due to concerns about the classification of most cryptocurrencies as securities.
What happened: JPMorgan CEO and Global Market Strategist Nikolaos Panigirtzoglou expressed skepticism about the SEC’s willingness to approve ETFs for cryptocurrencies like Solana (CRYPTO: GROUND), The block reported. He said the SEC’s decision to approve Ethereum ETFs was already overkill due to continued ambiguity regarding the classification of Ethereum as a security.
His comments follow the SEC Approval of Ethereum Spot ETFs last week, an event considered politically motivated by some analysts. The SEC has approved Forms 19b-4 from various applicants such as Shades of grey (OTC:ETHE), Bitwise, black rock (NYSE:BLACK), VanEck, Arche 21Shares, Invesco, loyalty And Franklin in a general order. Despite this progress, actual trading of these ETFs still depends on the SEC’s final approval of S-1 filings, which is expected to occur in the coming weeks.
Panigirtzoglou points out that unless U.S. policymakers pass legislation clarifying that most cryptocurrencies are not securities, the prospects for new crypto ETFs remain bleak.
On the contrary, some analysts are more optimistic. Chartered standard Banks Geoffrey Kendrick anticipates approval of Solana and XRP (CRYPTO: XRP) ETF by 2025, while that of TD Cowen Jared Seiberg suggests the possibility of a “basket of crypto tokens» ETF within a year.
Also read: Donald Trump: “I will ensure that the future of crypto and Bitcoin is made in the United States”
Why is this important: Analysts have questioned whether other cryptocurrencies like Solana or Dogecoin could be next in line for ETF approval. Some analysts have predicted that Solana may struggle to outperform Ethereum following the approval of the latter’s ETF.
While the House of Representatives recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), colloquially dubbed the “Financial Innovation and Technology for the 21st Century Act” (FIT21).crypto invoice“Industry experts expect a more accommodating regulatory environment for cryptocurrencies in the near future. It remains to be seen whether this will translate into more exchange-traded funds for cryptocurrencies.
And after: The influence of Ethereum as an institutional asset should be explored in depth in the next The future of digital assets event on November 19.
Read next: Why Donald Trump will pump crypto: Mad Crypto Alpha with Ivan
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock.
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