SEC will reject applications for ETFs based on Solana or other altcoins: JPMorgan – DiarioBitcoin

Following the recent approval of ETFs EthereumNikolaos Panigirtzoglou from JPMorgan does not believe that SEC will give the green light to funds based on Solarium or other altcoins, as many of these assets have been classified as securities.

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• SEC Approved Applications for Ethereum Spot ETF Last Week
• Despite that, JPMorgan does not believe it is a guarantee for other Solana-based ETFs or other altcoins.
• These cases are complicated because the SEC classified some tokens as securities, although they operate similar to ETH
• Some analysts consider it feasible for the SEC to approve at least one ETF based on Solana
• There is also the option for the Senate to vote on a law that clarifies this issue.

Now that exchange-traded funds (ETFs) based on Ethereum are almost a reality in the US and are waiting for a date to start operations, analysts at JPMorgan recommend that enthusiasts of other cryptocurrencies be restrained with their expectations, as they do not believe that the Securities and Exchange Commission (SEC) approve similar products for other popularly known digital currencies.

The SEC will not give the green light to ETFs based on other altcoins

As is customary, this precision was made by the analyst of JPMorgan, Nikolaos Panigirtzoglou, who in an interview for the media The Block rejected the thesis that ETFs Ethereum cash are listed as collateral for funds based on other cryptocurrencies, since the SEC It could only consider the cases of those assets that have not been classified as securities.

In this regard, Panigirtzoglou considers that “The SEC’s decision to approve ETH ETFs is already overblown given the ambiguity over whether Ethereum should be classified as a security or not.“. He added that the agency already has an opinion “stronger” on all those tokens that are not Bitcoin either Ethereum, which he has said should qualify as securities given their conditions and operation.

Let us keep in mind that one of the most debatable points during the ETF application Ethereum in cash would be precisely the opinion of the SEC around the applicable classification.

Since September 2022, the network of said digital currency operates under an algorithm called Proof-of-Stake (PoS)which works as a guarantee fund system that derives passive profits for participants, something with which the agency has had its doubts because it considered that it could be an investment contract applicable to securities.

Until a few days ago, analysts and enthusiasts considered efforts for an ETF to be lost. Ethereum in cash, but everything changed because the SEC request the applicants and the exchanges to submit the forms 19b-4 to indicate changes in trading rules. After all entities made it clear that staking would not be done with the ETH allocated in the funds, the agency approved all the requests and they are only waiting to set a date for the start of operations.

Expectations for other spot crypto ETFs

Due to the surprising change in the perspective of SEC and the imminent arrival of ETFs Ethereum cash, there are many analysts theorizing about the possible arrival of more exchange-traded funds based on other cryptocurrencies in the not-too-distant future.

For example we have the reading of the head of digital assets and forex research at Standard CharteredGeoffrey Kendrick, who anticipates that the next narrative in the cryptocurrency market will be spot ETFs tokens as Solarium (SOL) and Ripple (XRP).

“In several cases, the core technology is so similar to ETH that it would be difficult for the SEC to claim that they were securities given ETH’s position,” Kendrick commented on Solarium, although there is still nothing specific from the agency regarding such cases.

Returning to Panigirtzoglou, although he has few expectations regarding other crypto ETFs, he indicated that this could very possibly change if the US Senate votes some type of resolution that relaxes the regulations on which the SEC for taking decisions. Let us remember that US legislators recently approved the FIT21 Act, with which they establish a first large-scale framework for cryptocurrencies where they empower the Commodity Futures Commission (CFTC) as the main entity responsible for supervising said market.

For now, there has not been any administrator or entity requesting ETF Bitcoin either Ethereum who has attempted to file for a fund based on some other digital currency.

Regarding ETFs Ethereum, the analysts of JPMorgan They indicated in a previous report that they would most likely begin operations before the presidential elections scheduled for the end of the year, with the intention of the government transmitting a crypto-friendly perception with the intention of attracting voters within the sector.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.