“We do not believe that the SEC will approve a Solana ETF”
Key facts:
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The US Securities and Exchange Commission has just approved ether spot ETFs.
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In recent days, analysts have suggested that SOL will be the next to have its ETF.
The financial giant JP Morgan assures that it does not believe that the United States Securities and Exchange Commission (SEC) will approve a Solana ETF (SOL) and other exchange-traded funds based on cryptocurrencies.
In the last few hours, Nikolaos Panigirtzoglou, the CEO and global market strategist of JP Morgan, declared that has his doubts that the SEC approve these financial instruments of the digital currency created by Anatoly Yakovenko.
“We hesitate. The SEC’s decision to approve ETH ETFs is already a stretch given the ambiguity over whether ether (ETH) should be classified as a security or not. We do not believe that the SEC will go even further in approving SOL or other tokens,” Panigirtzoglou said.
In that sense, he added that “the SEC has a stronger opinion that tokens outside of bitcoin (BTC) and ETH should be classified as securities (securities)».
In this regard, the president of the SEC, Gary Gensler, express months ago what are the differences between BTC and cryptocurrencies, according to your opinion. “Anything other than bitcoin you can find a website, you can find a group of entrepreneurs, they can establish their legal entities in an offshore tax haven, they can have a foundation, they can present a lawyer to try to arbitrate and hinder jurisdictionally, etcetera”, he explained. And he argued that it is for this reason, Everything that is not BTC must be under the control of the SEC.
For his part, Panigirtzoglou argued that the only way for more instruments of these characteristics to be approved is for the United States promote legislation so that cryptocurrencies are not considered unregistered securities. “The SEC could approve other digital currency ETFs. But, currently, there is no such legislation,” he concluded.
It is worth remembering that, in 2023, the SEC issued a 136-page document against Binance, explaining the reasons why it considers that SOL is a security and why, in its opinion, this crypto asset should be subject to the Law of United States Values.
The focus is on Solana
On May 23, the SEC approved the ether spot ETF, the native cryptocurrency of the Ethereum network. In this framework, several analysts believe that this measure paved the way for the emergence of other digital asset instruments, among which SOL stands out.
As Criptonoticias already reported, Bernstein’s financial advisors maintain that the cryptocurrency that specializes in the execution of smart contracts could be next.
“The approval of the ETH ETF paves the way for a first non-bitcoin blockchain asset to be considered a commodity, raising hopes for cryptocurrencies similar to Ethereum (probably Solana) to follow the same route.”
Gautam Chhugani and Mahika Sapra, financial advisors at Bernstein.
This idea was supported by CNBC “Fast Money” trader Brian Kelly, who also raised the possibility of SOL being the next cryptocurrency to get an ETF in the United States.
“You have to think of SOL as next. Bitcoin, Ethereum and Solana are probably the big three for this cycle,” Kelly added.
For his part, Geoffrey Kendrick, head of digital assets and forex research at Standard Chartered Bank, believes that ETFs for other cryptocurrencies would be around the corner, but not until 2025.
These views contradict the SEC’s 2023 allegation against Binance that SOL is an unauthorized security.
However, the approval of the ether ETF marks an important precedent as it could boost the adoption of other digital assets in traditional financial systems.
