The recent approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has ignited hope for wider access to cryptocurrency investing through ETFs. However, major investment bank JPMorgan is tempering the prospects of similar approvals for other popular cryptocurrencies like Solana (SOL) anytime soon.
Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, expressed skepticism towards the SEC’s willingness to greenlight additional crypto ETFs. According to Panigirtzoglou, the SEC’s historical stance on classifying most cryptocurrencies as securities creates a significant hurdle.
“The decision by the SEC to approve ETH ETFs is already a stretch given the ambiguity about Ethereum’s classification,” Panigirtzoglou said. “We believe the SEC is unlikely to go further by approving Solana or other token ETFs, considering their stronger view on these assets being securities compared to Ethereum.”
Shift in Crypto ETFs Approvals
Panigirtzoglou suggests that a shift in the regulatory landscape, with U.S. policymakers classifying most cryptocurrencies as non-securities, could pave the way for broader crypto ETFs approvals. However, such legislation is currently non-existent.
The SEC’s abrupt approval of spot Ethereum ETFs last week raised eyebrows among some analysts. Several speculated that the decision might be politically motivated, considering the SEC’s last-minute re-engagement with stakeholders after months of stalled conversations.
This move resulted in the approval of 19b-4 forms for eight spot Ethereum ETF applicants – Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin – in a single omnibus order on May 23rd. While S-1 registrations for these ETFs are still pending, several analysts anticipate trading to commence within the coming weeks.
JPMorgan’s pessimism regarding future crypto ETF approvals contrasts with the optimism expressed by other analysts. Standard Chartered Bank’s Geoffrey Kendrick recently predicted the greenlight for Solana and XRP ETFs in 2025. Similarly, TD Cowen’s Jaret Seiberg anticipates a wider range of crypto ETFs, including basket funds encompassing multiple crypto tokens, to emerge within the next year.
The contrasting viewpoints highlight the current uncertainty surrounding crypto ETF regulations in the United States. While the Ethereum ETF approval signifies a potential shift, the path forward for broader access to various cryptocurrencies through ETFs remains unclear.
Related Reading | Solana (SOL) Hints at Rebound Amid Analyst Optimism and ETF Prospects
