JP Morgan: Solana and XRP ETFs Unlikely to Gain SEC Approval.
Following the SEC's approval of Ethereum ETFs, alongside Bitcoin ETFs, speculation has grown about the potential for ETFs based on other cryptocurrencies like Solana (SOL) and XRP. However, JP Morgan's recent comments suggest this may not be likely.
The Block reports that Nikolaos Panigirtzoglou, JP Morgan's managing director and global market strategist, doubts the SEC will approve ETFs for Solana or other altcoins. Panigirtzoglou explained that the SEC's stance is that most cryptocurrencies are securities, complicating the approval of further altcoin ETFs.
"We don't expect the SEC to approve any altcoin ETFs other than Ethereum," Panigirtzoglou said. "The approval of ETH ETFs was already a significant step, given the ambiguity about whether Ethereum should be classified as a security. We believe the SEC is unlikely to move forward with approving Solana or other token ETFs, as they are likely to be classified as securities."
This insight emphasizes the challenges other cryptocurrencies face in obtaining ETF approval without new legislation that clarifies their status as non-securities.