JPMorgan Report Calls XRP and Solana ETF Potential Approval A Fantasy Heres Why
Since the spot Bitcoin ETFs were approved, there have been talks about ETFs being approved for other cryptos. Ethereum (ETH) has been a major focus point in this respect. For one, many experts and even regulators consider Bitcoin and Ethereum commodities, which works in favor of ETF approvals for the said cryptos. Similarly, many other cryptos are considered securities by their working models.
Now, theres talk about Solana (SOL) and XRP ETFs. However, some influential entities think this is unlikely to happen soon, and they have their reasons. One such entity is JPMorgan. An exec from the bank had something to share regarding SOL and XRP ETFs.
Why A Fantasy?
According to Nikolaos Panigirtzoglou, any hopes of an SOL and XRP ETF approval soon are pure fantasy. Nikolaos believes that the SEC has the upper hand in classifying most of the existing cryptos as securities (except BTC and ETH). Nikolaos is a managing director and global market strategist at JPMorgan.
Approving an ETH ETF was a slim win, given the backlash that dogged the process. ETH has now joined BTC in the realm of crypto ETFs. Some top crypto networks have been lobbying to approve more ETFs covering other cryptos. Still, this strive has been largely suppressed by the sentiments that most cryptos are securities instead of commodities like Bitcoin. Granted, Ripple emerged with a victory against the SEC in a case where the SEC wanted XRP classified as a security. The vague regulatory framework by the SEC worked against it.
Theres Growing Optimism
While the possibility of SOL and XRP ETF approvals is currently slim, theres still a chance that things could change for the better if new legislation is passed. This legislation would exclude all cryptos from the securities bracket, thereby paving the way for the SEC to approve their ETFs. This prospect may not be far-fetched, given that more lawmakers are joining the crypto bandwagon and advocating for the technology.
Read more: https://zycrypto.com/jpmorgan-report-calls-xrp-and-solana-etf-potential-approval-a-fantasy/
Text source: ZyCrypto
