JPMorgan Sceptical of SEC Approval for Solana & Crypto ETFs

JPMorgan has expressed scepticism regarding the United States Securities and Exchange Commission (SEC) approving Solana and other cryptocurrency exchange-traded funds (ETFs) following the recent approval of Ethereum ETFs.

Nikolaos Panigirtzoglou, Managing Director and Global Market Strategist at JPMorgan, conveyed to The Block that the investment bank doubts the SEC will approve such funds, given its position that most cryptocurrencies are considered securities.

Panigirtzoglou indicated that the decision by the SEC to approve ETH ETFs is already stretched due to the ambiguity about whether Ethereum should be classified as a security. He suggested that the SEC is unlikely to approve Solana or other token ETFs because it has a stronger opinion that tokens outside Bitcoin and Ethereum should be classified as securities.

He further noted that unless U.S. policymakers pass legislation deeming most cryptocurrencies as not securities, the SEC is unlikely to approve other crypto ETFs. However, he pointed out that no such legislation currently exists.

Last week, the SEC unexpectedly approved spot Ethereum ETFs, a decision some analysts have suggested was politically motivated. The SEC re-engaged with stakeholders at the last minute, following months of stalled discussions.

The SEC approved 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 23. The S-1 registrations for these ETFs are still pending SEC sign-off, allowing the funds to begin trading. Analysts expect trading to commence in the coming weeks.

While JPMorgan remains cautious about the SEC approving other crypto ETFs, some analysts believe the recent approval of spot Ethereum ETFs could lead to more crypto ETFs tied to other cryptocurrencies and tokens.

Geoffrey Kendrick of Standard Chartered Bank predicted the approval of Solana and XRP ETFs in 2025. Jaret Seiberg of TD Cowen suggested that the market could see more crypto ETFs, including an ETF offering a “basket of crypto tokens,” within a year.