JPMorgan Chase has expressed doubts about the SEC’s approval of Solana and other cryptocurrency exchange-traded funds (ETFs).

JPMorgan managing director and global market strategist Nikolaos Panigirtzoglou expressed the bank’s concerns to The Block, emphasizing the SEC’s strict view on cryptocurrencies. According to Panigirtzoglou, the SEC’s approval of an Ethereum ETF is already a breakthrough as the debate surrounding whether Ethereum is classified as a security continues.

SEC’s strict stance on cryptocurrencies

“We doubt the SEC will approve ETFs for Solana or other tokens,” Panigirtzoglou said. He noted that the SEC takes a strong stance on most tokens (with the exception of Bitcoin and Ethereum) being classified as securities. This strict view makes further approval unlikely unless new legislation redefines these classifications.

Panigirtzoglou noted that legislative changes could alter the SEC's current course. If U.S. policymakers pass laws deeming most cryptocurrencies not to be securities, the SEC may consider approving more cryptocurrency ETFs. However, he stressed that no such legislation currently exists.

(Three common questions after the U.S. SEC approves the ETH ETF)

Analyst Expectations for the Ethereum ETF

The S-1 registration for an approved ETF still requires final SEC sign-off, which is necessary to begin trading. Analysts expect trading could begin in the coming weeks.

Divided Opinions on Future Cryptocurrency ETF Approval

While JPMorgan remains cautious, other analysts are more optimistic about the future of cryptocurrency ETFs. For example, Standard Chartered’s Geoffrey Kendrick predicts that Solana and XRP ETFs could be approved by 2025. Likewise, TD Cowen’s Jaret Seiberg noted that the market may see more cryptocurrency ETFs within the year, including ETFs containing “a combination of cryptocurrencies.”

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