JP Morgan CEO and International Market Strategist Nikolaos Panigirtzoglou mentioned the ETF for Solana (SOL) and different property are unlikely to succeed.
In a press release to The Block on Might 27, Panigirtzoglou claimed that the SEC's current determination to approve spot Ethereum ETFs is “already a stretch.”
Whether or not the SEC considers ETH a safety or a commodity is unclear regardless of the approvals.
Panigirtzoglou mentioned the dearth of readability casts doubt on different property, stating:
“We don't suppose the SEC will go any additional by approving Solana or different token ETFs.”
He added that the SEC believes that tokens apart from BTC and ETH must be categorised as securities, a stronger place than towards ETH itself.
Panigirtzoglou acknowledged that US lawmakers may create laws that will classify most cryptocurrencies as securities, however mentioned no such laws exists.
Others anticipate a SOL ETF
Some commentators are extra optimistic in regards to the SOL ETF's possibilities.
Crypto investor Brian Kelly believes the approval of the ETH ETF may improve the possibilities of the Solana ETF being accepted, however acknowledged that SOL's standing as a safety is a matter.
Bloomberg ETF analyst James Seyffart expects the Solana ETF to succeed through the years with laws like FIT21 delineating the securities and futures markets. Equally, he acknowledged Solan's safety standing as a possible problem.
Forecast market charges are low. Polymarket stories a few 13% probability that the SEC will approve the Solana ETF by the top of 2024.
The SEC considers SOL to be a safety
No matter future remedy, the SEC has beforehand recognized Solana and different altcoins as securities in numerous enforcement circumstances.
In its case towards Coinbase, the SEC mentioned Solana was one in every of many tokens supplied as an funding contract and collateral, each in previous and present gross sales.
The regulator highlighted Solana Labs' $23 million Easy Futures Token Settlement (SAFT) as one instance of a securities providing and sale. SOL additionally cited as safety in circumstances towards Binance and Kraken.
Nevertheless, the SEC didn’t provoke enforcement actions towards Solana Labs or associated events straight.
