Bank experts believe that the emergence of spot exchange-traded funds for other cryptocurrencies will require the adoption of new laws

JPMorgan rules out imminent adoption of new cryptocurrency ETFs
JPMorgan questioned the approval of ETFs for altcoins
Bank experts believe that the emergence of spot exchange-traded funds for other cryptocurrencies will require the adoption of new laws

The US Securities and Exchange Commission (SEC) is unlikely to approve other cryptocurrency exchange-traded funds other than Bitcoin and Ethereum, analysts at JPMorgan, one of the world's largest investment banks, believe. The experts' arguments are based on the position of the SEC, which classifies most cryptocurrencies as securities.

Earlier, analysts at the brokerage company Bernstein suggested that the Solana cryptocurrency ($SOL ) has strong prerequisites for the next exchange-traded fund to be launched on its basis, and the token itself $SOL may be classified as a commodity. British bank Standard Chartered said it expects approval of a Solana-based ETF and Ripple's XRP cryptocurrency by 2025.

According to JPMorgan experts, more exchange-traded funds will appear if the US Congress, by a separate law, introduces rules according to which cryptocurrencies will not be classified as securities. Now there is no such law.

«SEC Ruling on Ethereum ETF ($ETH ) is difficult to accept given the uncertainty over whether Ethereum should be classified as a security. We do not think the SEC will approve a Solana cryptocurrency ETF or other tokens, given that the commission has a strong position that tokens other than Bitcoin and Ethereum should be classified as securities,” said the managing director and global market strategist at JPMorgan Nikolaos Panigirtzoglou in a comment to The Block.

The American exchange regulator on May 23 in a single decision approved Forms 19b-4 for eight exchange-traded funds (ETFs) based on Ethereum: Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity and Franklin.

However, in order for these funds to begin trading their shares on exchanges, they require another SEC approval: registration on Form S-1. Experts expect Ethereum ETF shares to begin trading in the coming weeks.

Exchange traded funds (ETFs) allow you to trade the underlying asset in the form of shares. So-called spot ETFs involve actually purchasing an asset (i.e. cryptocurrency) from the market to back the fund's shares.
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