Source: cryptoslate
Compiled by: Blockchain Knight
Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, said ETFs for Solana and other assets are unlikely to be successfully approved.
In a statement to The Block on May 27, Panigirtzoglou argued that the SEC’s (U.S. Securities and Exchange Commission) recent decision to approve a spot Ethereum ETF “is already stretched thin.”
Despite the approval, it is unclear whether the SEC considers ETH to be a security or a commodity .
Panigirtzoglou said the lack of clarity casts doubt on other assets: “We don’t think the SEC will go any further than approving a Solana or other token ETF.”
He added: “The SEC believes that tokens other than BTC and ETH should be classified as securities , which is a stronger stance than its stance on ETH itself.”
Panigirtzoglou acknowledged that U.S. lawmakers could enact legislation that would classify most crypto assets as non-securities, but he said such legislation does not exist.
Some commentators also believe that the Solana ETF’s chances of approval are optimistic .
Crypto asset investor Brian Kelly believes that the approval of the ETH ETF may increase the chances of approval of the Solana ETF, but he also admits that SOL’s classification as a security is a “potential problem.”
Bloomberg ETF analyst James Seyffart expects the Solana ETF to be successful in a few years as legislation such as FIT21 separates the securities and futures markets. In addition, Seyffart also believes that Solana’s security status is a potential challenge.
Polymarket reports that there is about a 13% chance that the SEC will approve the Solana ETF by the end of 2024.
Regardless of future treatment, the SEC has previously identified Solana and other tokens as securities in multiple enforcement cases .
In its case against Coinbase, the SEC said Solana was one of many tokens offered as investment contracts and securities, both in past and current sales.
The regulator highlighted Solana Labs’ $23 million “Simple Agreements for Future Tokens” (SAFTs) as an example of an offer and sale of securities. The SEC also called Solana a security in its cases against Binance and Kraken.
However, the SEC did not initiate direct enforcement against Solana Labs or related parties.
