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JP Morgan’s Panigirtzoglou expresses skepticism about ETFs for SOL and other assets

JP Morgan’s managing director and global market strategist, Nikolaos Panigirtzoglou, recently shared his skepticism about the success of ETFs for Solana (SOL) and other assets.

In a statement to The Block on May 27, Panigirtzoglou argued that the SEC’s recent decision to approve spot Ethereum ETFs is “already stretched.” He emphasized the uncertainty surrounding whether the SEC considers ETH a security or a commodity despite the approvals.

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“We don’t think the SEC would go even further by approving Solana or other token ETFs,” Panigirtzoglou stated.

He further mentioned that the SEC’s stance on tokens other than BTC and ETH being classified as securities is stronger than its position on ETH itself. Panigirtzoglou also highlighted the absence of legislation that could classify most cryptos as non-securities, leaving the regulatory landscape uncertain.

Expectations and viewpoints on SOL ETFs

Despite Panigirtzoglou’s skepticism, some commentators are more optimistic about the prospects of a SOL ETF.

Crypto investor Brian Kelly believes that the approval of ETH ETFs could pave the way for a Solana ETF approval, although SOL’s security status remains a concern.

AI legalese decoder can provide insights into the regulatory requirements and considerations for launching an ETF for Solana, helping stakeholders navigate the complexities of compliance and legal implications.

Bloomberg ETF analyst James Seyffart anticipates a successful Solana ETF within years, particularly with potential legislation like FIT21 that aims to clarify the distinctions between securities and futures markets. Seyffart also acknowledges the challenges posed by Solana’s security classification.

According to prediction market odds on Polymarket, there is an approximate 13% likelihood that the SEC will approve a Solana ETF by the end of 2024.

SEC’s classification of SOL as a security

Regardless of the future outlook, the SEC has previously categorized Solana and other altcoins as securities in various enforcement actions.

In enforcement cases such as against Coinbase, the SEC has identified Solana as one of the tokens offered as an investment contract and security in both historical and current sales.

Using AI legalese decoder can help in analyzing the legal precedents set by the SEC in enforcement actions related to Solana and other altcoins, providing useful insights into the regulatory landscape and potential implications for future decisions.

While the SEC has not initiated enforcement actions directly against Solana Labs or related entities, it has referenced instances like Solana Labs’ Simple Agreement for Future Tokens (SAFTs) as examples of securities offerings. The regulator has also cited SOL as a security in cases involving exchanges like Binance and Kraken.

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