JP Morgan managing director and international market strategist Nikolaos Panigirtzoglou stated ETFs for Solana (SOL) and different belongings are unlikely to succeed.
In a press release to The Block on Might 27, Panigirtzoglou argued that the SEC’s latest choice to approve spot Ethereum ETFs is “already stretched.”
Whether or not the SEC considers ETH a safety or a commodity is unclear regardless of the approvals.
Panigirtzoglou stated the dearth of readability casts doubt on different belongings, stating:
“We don’t suppose the SEC would go even additional by approving Solana or different token ETFs.”
He added that the SEC believes tokens apart from BTC and ETH must be categorized as securities, a stronger stance than its one towards ETH itself.
Panigirtzoglou acknowledged that US lawmakers may create laws to categorise most cryptos as non-securities however stated such laws doesn’t exist.
Others anticipate SOL ETFs
Some commentators are extra optimistic concerning the possibilities of a SOL ETF.
Crypto investor Brian Kelly believes ETH ETF approvals may enhance the percentages of a Solana ETF approval however acknowledged that SOL’s standing as a safety is a matter.
Bloomberg ETF analyst James Seyffart expects a Solana ETF to succeed inside years with laws corresponding to FIT21, which can delineate securities and futures markets. He equally acknowledged Solana’s safety standing as a possible problem.
Prediction market odds are low. Polymarket studies an roughly 13% likelihood that the SEC will approve a Solana ETF by 2024-end.
SEC considers SOL a safety
No matter future therapy, the SEC has beforehand recognized Solana and different altcoins as securities in numerous enforcement circumstances.
In its case towards Coinbase, the SEC stated that Solana was considered one of many tokens supplied as an funding contract and safety, each in previous and current gross sales.
The regulator has highlighted Solana Labs’ $23 million Easy Settlement for Future Tokens (SAFTs) as one instance of a suggestion and sale of securities. It has additionally known as SOL a safety in circumstances towards Binance and Kraken.
Nonetheless, the SEC has not initiated an enforcement towards Solana Labs or associated events immediately.