- JPMorgan doubts SEC approval of Solana ETF
- The SEC recently approved a spot Ethereum ETF.
- Other analysts believe Solana could be the first candidate for an ETF.
The recent SEC approval of spot Ethereum Exchange Traded Funds (ETFs) has created great excitement in the Solana community. Some analysts suggest that SOL will be the first after Bitcoin and Ethereum.
But not everyone agrees that the SEC has changed its position sufficiently. Leading global financial services firm JPMorgan has expressed doubts about the SEC’s willingness to approve similar ETFs for other cryptocurrencies, including Solana.
Solana faces serious barriers to SEC approval
On May 23, the SEC approved spot Ethereum ETFs from several major companies, including Grayscale, Bitwise, and BlackRock. The decision was made after months of stalled talks, with some suggesting the agency was swayed by political pressure.
Despite this progress, Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, expressed skepticism about the SEC extending this approval to other cryptocurrencies like Solana. Panigirtzoglou noted that the SEC’s position that most cryptocurrencies are securities remains a significant barrier.
“The SEC’s decision to approve the ETH ETF was already extended in light of the ambiguity over whether Ethereum should be classified as a security,” Panigirtzoglou explained. “Given the SEC’s strong opinion that tokens other than Bitcoin and Ethereum should be classified as securities, we do not believe the SEC will go any further in approving Solana or any other token ETF,” he added.
Why the SEC has changed its view on cash ETFs
A key factor in the SEC’s changes was significant pressure from U.S. lawmakers. A bipartisan group on the House Financial Services Committee, led by Rep. French Hill, sent a letter to SEC Chairman Gary Gensler urging approval of a spot Ethereum ETF. Lawmakers argued that approving Bitcoin ETFs earlier set a precedent that should logically be extended to Ethereum.
Earlier this year, a court forced the SEC to approve a Bitcoin ETF. A federal court ruled against the SEC in a case involving the approval of a spot Bitcoin ETF, creating a legal precedent that may force the SEC to reconsider its stance on similar applications.
Despite JP Morgan’s skepticism, other analysts believe Solana has a good case for ETF approval following the SEC’s Ethereum decision. Bloomberg analyst James Seyffart pointed out that the same case made for Ethereum also applies to other cryptocurrencies.
Seyffart expects demand for the Solana ETF to outpace demand for other altcoins. But he acknowledged regulatory issues and said it was likely a Solana ETF would be launched. After 2026 Unless Congress intervenes.
On the flip side
- Despite Ethereum’s success in obtaining SEC approval, analysts doubt These products will likely attract similar interest as Bitcoin spot ETFs.
- Ripple recently hinted at it itself. ETF Approved Bidding. However, the project may be hampered by a lengthy lawsuit with the SEC.
Why This Matters
Potential SEC approval of the Solana ETF would be a major development for the token, strengthening Solana’s legitimacy among top cryptocurrency projects.
Learn more about the ETH Spot ETF and its potential market impact.
Why Ethereum Spot ETF Doesn’t Reflect Bitcoin’s Success
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