JPMorgan expressed doubts regarding the SEC’s inclination to approve additional crypto ETFs, particularly after greenlighting Ethereum ETFs. SEC clearance is unlikely until lawmakers declare the majority of cryptocurrencies to be non-securities, according to JPMorgan analyst Nikolaos Panigirtzoglou.
Position of the SEC Regarding Crypto ETFs
Panigirtzoglou also pointed out that the SEC is not very aggressive and backed up its actions by saying that it is still unclear whether Ethereum is a security. He signaled that the fact that other tokens apart from BTC and ETH are much more critical than Solana, the SEC might not green light Solana or other token ETFs
The absence of legislation deeming most cryptocurrencies as non-securities poses a barrier to SEC approval for additional crypto ETFs. Panigirtzoglou suggested that such legislation could alter the landscape and pave the way for broader approval.
Analyst Projections and Market Outlook
Despite JPMorgan’s skepticism, other analysts foresee potential expansions in the crypto ETF market. Geoffrey Kendrick from Standard Chartered Bank anticipates Solana and XRP ETF approvals by 2025.
Additionally, Jaret Seiberg from TD Cowen suggests the possibility of more crypto ETF offerings within a year, including those encompassing a variety of crypto tokens. JPMorgan remains cautious about SEC approval for Solana and other crypto ETFs, differing analyst opinions indicate a dynamic and evolving landscape in the crypto market.
Also Read: JPMorgan Eyes Crypto Trading for Institutional Clients
