JP Morgan managing director and international market strategist Nikolaos Panigirtzoglou stated ETFs for Solana (SOL) and different belongings are unlikely to succeed.
In an announcement to The Block on Could 27, Panigirtzoglou argued that the SEC’s current determination 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 ought to be categorized as securities, a stronger stance than its one towards ETH itself.
Panigirtzoglou acknowledged that US lawmakers might create laws to categorise most cryptos as non-securities however stated such laws doesn’t exist.
Others count on SOL ETFs
Some commentators are extra optimistic concerning the possibilities of a SOL ETF.
Crypto investor Brian Kelly believes ETH ETF approvals might improve 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 is able to delineate securities and futures markets. He equally acknowledged Solana’s safety standing as a possible problem.
Prediction market odds are low. Polymarket stories an roughly 13% probability that the SEC will approve a Solana ETF by 2024-end.
SEC considers SOL a safety
No matter future remedy, the SEC has beforehand recognized Solana and different altcoins as securities in numerous enforcement instances.
In its case in opposition to Coinbase, the SEC stated that Solana was one among many tokens provided 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 proposal and sale of securities. It has additionally known as SOL a safety in instances in opposition to Binance and Kraken.
Nevertheless, the SEC has not initiated an enforcement in opposition to Solana Labs or associated events straight.
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