JP Morgan says expectations for the Solana ETF are a pipe dream. Here’s why

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Analysts in JP MorganAmerican multinational investment banking firm, tempered rising expectations a ETF Solana. They cite the U.S. Securities and Exchange Commission’s (SEC) recent enforcement actions against the cryptocurrency industry as a major obstacle to establishing a Solana ETF.

Solana ETF hopes dashed by JP Morgan analysts

JP Morgan still has doubts about the potential Commission approval of the Solana ETF US SEC. Nikolaos Panigirtzoglou, managing director and global market strategist at J.P. Morgan, said in a statement to TheBlock that he is skeptical about the SEC approving more cryptocurrency ETFs following its approval of Spot Bitcoin ETFs and Ethereum spot ETFs This year.

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Panigirtzoglou dismissed rising expectations for the Solana ETF, pointing to the ambiguity surrounding the apparent hostile stance towards cryptocurrencies. He revealed that the regulator’s implicit classification of cryptocurrencies as securities could pose a significant challenge to the creation of the Solana ETF. “We don’t think the SEC would go further by approving Solana or other token ETFs,” Panigirtzoglou said.

The analyst further confirmed that the SEC will not approve any external tokens Bitcoin and Ethereum, which suggests that the regulator believes that altcoins other than Bitcoin and Ethereum should be classified as securities.

By following approval of Spot Bitcoin ETFs on January 10, many predicted that Ethereum would be next in line to get an ETF. True forecastThe US SEC recently approved Ethereum Spot ETFs on May 23, after months of delaying multiple applications from several asset management firms, including Black RockFidelity, Bitwise and others.

Now with the approval of the Spot Bitcoin ETF and Ethereum Spot ETF, expectations for more cryptocurrency ETFs are high, with Solana and XRP being the best choice among other digital currencies.

Panigirtzoglou said that was the only way the SEC would do it approve the Solana ETF occurs if U.S. policymakers pass legislation recognizing cryptocurrencies as securities. However, to date, no such regulations have been approved.

Standard Chartered analysts expect cryptocurrency ETFs to reach 2025

In another statement to TheBlock, analysts at the international cross-border bank: Standard chartered maintained a more hopeful approach to the potential creation of the Solana ETF. Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicted that the SEC might approve other cryptocurrency ETFs including the Solana ETF until 2025

He suggested that the approval of the Ethereum Spot ETF indicates this Ethereum is not classified as a security by the SEC. As such, other Ethereum-like cryptocurrencies such as Solana and XRP which SEC previously marked as securitiescan also be classified as instruments other than securities.

Kendrick explained that the underlying technologies of Ethereum and other altcoins in the cryptocurrency market are “so similar” that it would potentially pose a legal challenge to the SEC to claim that the latter cryptocurrencies were securities. This similarity could ultimately pave the way for the regulatory agency to consider approving other cryptocurrency ETFs.

SOL price over $170 | Source: SOLUSDT is

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