A managing director and global market strategist at JP Morgan expressed skepticism about the likelihood of ETFs for Solana (SOL) and other assets succeeding. In a statement to The Block on May 27, Nikolaos Panigirtzoglou argued that the recent approval of spot Ethereum ETFs by the SEC is already a stretch. He pointed out the lack of clarity on whether the SEC considers ETH a security or a commodity despite the approvals.
Panigirtzoglou stated that it is unlikely for the SEC to approve Solana or other token ETFs, as the regulatory body believes tokens other than Bitcoin (BTC) and Ethereum (ETH) should be classified as securities. He also mentioned the possibility of US lawmakers creating legislation to classify most cryptos as non-securities, although such legislation currently does not exist.
While some commentators are more optimistic about the chances of a SOL ETF approval, others like Crypto investor Brian Kelly and Bloomberg ETF analyst James Seyffart recognize the challenges, particularly regarding Solana’s security status.
Prediction market odds for a Solana ETF approval by the end of 2024 are currently low, with Polymarket reporting approximately a 13% chance. Regardless of future treatment, the SEC has previously identified Solana and other altcoins as securities in various enforcement cases against companies like Coinbase, Binance, and Kraken.
The article covers the skepticism surrounding the approval of Solana ETFs, the SEC’s stance on altcoins as securities, and the differing opinions on the potential for a SOL ETF approval in the future.
