HomeETFsJPMorgan Casts Doubt on SEC Approval for Solana and Other Crypto ETFs

JPMorgan Casts Doubt on SEC Approval for Solana and Other Crypto ETFs

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JPMorgan Doubtful SEC Will Approve More Crypto ETFs Beyond Ethereum

Are Cryptocurrency ETFs in Trouble? What JPMorgan’s Doubt Means for the Future

In a recent development, JPMorgan has raised serious concerns about the Securities and Exchange Commission (SEC) approving additional cryptocurrency exchange-traded funds (ETFs) beyond Ethereum. This skepticism stems from the classification of most cryptocurrencies as securities, a factor that could hinder the approval of ETFs for assets like Solana.

JPMorgan’s managing director and global market strategist, Nikolaos Panigirtzoglou, highlighted the SEC’s hesitation to approve ETFs for cryptocurrencies like Solana due to the ongoing ambiguity surrounding their classification. The recent approval of spot Ethereum ETFs by the SEC was seen as politically motivated by some analysts, raising questions about the future of crypto ETFs.

Despite the progress made with the approval of Ethereum ETFs, the actual trading of these assets is still pending final approval from the SEC. Panigirtzoglou emphasized that without clear legislation from U.S. policymakers stating that most cryptocurrencies are not securities, the prospect of new crypto ETFs remains uncertain.

However, not everyone shares JPMorgan’s pessimism. Standard Chartered Bank’s Geoffrey Kendrick predicts the approval of Solana and XRP ETFs by 2025. Similarly, TD Cowen’s Jaret Seiberg suggests the possibility of a “basket of crypto tokens” ETF within a year.

With the recent passage of the Financial Innovation and Technology for the 21st Century Act by the House of Representatives, experts are hopeful for a more favorable regulatory environment for cryptocurrencies. How this will impact the approval of cryptocurrency ETFs remains to be seen.

The upcoming Future of Digital Assets event by Benzinga on Nov. 19 will delve into the institutional potential of Ethereum and its influence on the crypto market. As the debate around crypto ETFs intensifies, the industry awaits further clarity from regulators to pave the way for new investment opportunities.

Could Solana or Dogecoin be the next in line for ETF approval? Will Ethereum’s dominance in the market be challenged by these new entrants? The evolving landscape of cryptocurrency investments promises exciting developments ahead.

Stay tuned for more updates on the future of crypto and how regulatory changes may shape the market. Don’t miss out on the latest insights from industry experts at Benzinga’s Future of Digital Assets event.

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