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JPMorgan Questions SEC Crypto ETF Expansion Plans: The Block
JPMorgan has expressed skepticism about the US Securities and Exchange Commission’s (SEC) willingness to approve more cryptocurrency exchange-traded funds (ETFs), The Block reported.
Last week, the SEC approved Ethereum spot ETFs, which initially fueled optimism among investors and analysts.
JPMorgan’s Nikolaos Panigirtzoglou, a managing director and global market strategist, said the regulator treats most cryptocurrencies as securities, raising questions about further approvals of crypto ETFs.
“The SEC’s decision to approve ETH ETFs is already forced given the ambiguity over whether Ethereum should be classified as a security or not,” Panigirtzoglou told The Block.
“We do not think the SEC would go further in approving Solana or other token ETFs, given that the SEC has a stronger opinion (than Ethereum) that tokens outside of Bitcoin and Ethereum should be classified as securities.”
The importance of this development lies in its potential influence on the cryptocurrency market, as ETF approvals are often linked to increased institutional investment and market stability.
Furthermore, the SEC’s decisions are indicative of the changing regulatory environment for digital assets.
In the wake of the SEC’s approval of Ethereum ETFs, the cryptocurrency market has seen an uptrend, with Solana’s value approaching $170.
Financial institutions such as Standard Chartered have predicted that recent SEC actions could lead to further ETF approvals, possibly for Solana and XRP, by 2025.
Despite JPMorgan’s caution, the market reacted positively to the SEC’s decision on Ethereum ETFs, with US Bitcoin ETFs experiencing favorable inflows, reflecting an increase in investor confidence.
The SEC’s green light for Forms 19b-4 for eight Ethereum ETF applicants has set the stage for the start of trading soon, subject to the SEC’s final approval of S-1 filings.