JPMorgan’s Cautionary Note: Uncertainty for Solana ETFs Ahead
JP Morgan managing director and worldwide market strategist Nikolaos Panigirtzoglou said ETFs for Solana (SOL) and other resources are improbable to succeed. In a statement to The Block on May 27, Panigirtzoglou contended that the SEC’s recent choice to endorse spot Ethereum ETFs is “already stretched.” Investors are closely monitoring Solana ETFs amid market volatility and regulatory scrutiny.
Solana ETFs Face Uncertain Future
Whether the SEC considers ETH a security or a product is still being determined in spite of the approvals. Panigirtzoglou said the need for clarity casts questions on other resources, stating:
“We don’t think the SEC would even encourage by endorsing Solana or other token ETFs.” He included that the SEC accepts tokens other than BTC, and ETH must be classified as securities, a stronger position than its one toward ETH itself.
Panigirtzoglou recognized that US legislators seem to create enactments to classify most cryptos as non-securities but said such enactments do not exist. The future of Solana ETFs remains uncertain as regulatory challenges and market dynamics continue to evolve.
Others anticipate SOL ETFs
Some commentators are more hopeful about the chances of a SOL ETF. Crypto speculator Brian Kelly accepts that ETH ETF endorsements might increase the chances of a Solana ETF endorsement but recognizes that SOL’s security status is an issue.
Bloomberg ETF investigator James Seyffart anticipates a Solana ETF to succeed within years with enactments such as FIT21, which will depict securities and prospects markets. He additionally recognized Solana’s security status as a potential challenge.
Prediction market chances are low. Polymarket reports a roughly 13% chance that the SEC will favor a Solana ETF by 2024’s end.
SEC considers SOL a security
Regardless of future treatment, the SEC has already distinguished Solana and other altcoins as securities in different requirement cases. In its case against Coinbase, the SEC said that Solana was one of the numerous tokens offered as a venture contract and security, both in the past and in display sales. According to JPMorgan‘s analysis, Solana ETFs may encounter hurdles in the current market environment.
The regulator has highlighted Solana Labs’ $23 million Basic Assertion for Future Tokens (SAFTs) as one case of an offer and deal of securities. It has also been called SOL security in cases against Binance and Kraken. However, the SEC has not started a requirement against Solana Labs or related parties specifically
