JP Morgan strategist doubts success of Solana ETFs amid SEC uncertainty

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Nikolaos Panigirtzoglou

28th May 2024 – (London) Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan, expressed skepticism regarding the viability of ETFs for Solana (SOL) and other assets. Panigirtzoglou stated that the recent approval of spot Ethereum ETFs by the SEC is already a contentious decision, as it remains unclear whether the SEC categorises ETH as a security or a commodity.

Panigirtzoglou emphasised that the lack of clarity surrounding Ethereum raises doubts about the prospects of ETFs for other assets, including Solana. He noted that the SEC’s stance suggests that tokens beyond Bitcoin and Ethereum should be considered securities, indicating a stricter approach.

While some experts are more optimistic about the possibility of a Solana ETF, such as Bloomberg ETF analyst James Seyffart, who expects its approval in the coming years with the introduction of legislation like FIT21, the odds predicted by the Polymarket prediction market are currently low, indicating a roughly 13% chance of a Solana ETF approval by the end of 2024.

It is worth noting that the SEC has previously identified Solana and other altcoins as securities in enforcement cases, including Solana’s involvement in Coinbase, Binance, and Kraken cases. However, no direct enforcement action has been taken against Solana Labs or related parties by the SEC at present.