J.P. Morgan Managing Director and International Market Strategist Nikolaos Panigirtzoglou stated an ETF for Solana (SOL) or another asset is unlikely to achieve success.
In a press release to The Block on Could 27, Panigirtzoglu argued that the SEC’s latest resolution to approve a spot Ethereum ETF “already crosses the road.”
Regardless of the approval, it’s unclear whether or not the SEC will think about ETH a safety or a commodity.
Panigirtzoglu stated the dearth of readability forged doubt on different property as effectively, saying:
“I don’t suppose the SEC will go any additional by approving Solana or another token ETF.”
He added that the SEC believes tokens apart from BTC and ETH ought to be categorized as securities, a stronger stance than it takes towards ETH itself.
Panigirtzoglu acknowledged that U.S. lawmakers may enact laws to categorise most cryptocurrencies as non-securities, however stated no such laws exists.
Folks Hoping for SOL ETF
Some commentators are extra optimistic concerning the potential of SOL ETFs.
Crypto investor Brian Kelly believes the approval of an ETH ETF will increase the probability of a Solana ETF being accepted, however acknowledged that SOL’s safety standing is a matter.
Bloomberg ETF analyst James Seifert expects the Solana ETF to take off throughout the subsequent few years due to laws reminiscent of FIT21, which distinguishes between securities and futures markets. He equally sees Solana's safety standing as a possible problem.
The chances on prediction markets are low: Polymarket experiences that there’s a few 13% likelihood that the SEC will approve the Solana ETF by the top of 2024.
The SEC considers SOLs to be securities
No matter future therapy, the SEC has beforehand recognized Solana and different altcoins as securities in numerous enforcement instances.
In its lawsuit in opposition to Coinbase, the SEC stated Solana was one in all many tokens provided as funding contracts and securities in each previous and present gross sales.
The regulator highlighted Solana Labs’ $23 million Easy Settlement for Future Tokens (SAFT) for instance of a securities providing and sale, and in addition referred to as SOL a safety in its lawsuits in opposition to Binance and Kraken.
Nonetheless, the SEC has not initiated any direct enforcement actions in opposition to Solana Labs or any associated events.
