JPMorgan Report Claims XRP and Solana ETF Approval is Merely a ‘Fantasy’—Here’s Why

Since the approval of the spot Bitcoin ETF, discussions about the approval of other cryptocurrency ETFs have been ongoing. Ethereum (ETH) has been a major focus in this regard. Initially, many experts and even regulatory bodies have considered Bitcoin and Ethereum as commodities, which is favorable for the approval of ETFs for these cryptos. Similarly, many other cryptocurrencies are viewed as securities based on their operational models.

Now, there’s talk about Solana (SOL) and XRP ETFs. However, some influential entities believe that such approvals are unlikely to happen soon, and they have their reasons. JPMorgan is one such entity. An executive from the bank shared some insights on SOL and XRP ETFs.

Why is it a Fantasy?

Nikolaos Panigirtzoglou suggests that any hopes for the swift approval of SOL and XRP ETFs are merely a fantasy. Nikolaos believes that the SEC has the upper hand in classifying most existing cryptocurrencies as securities (excluding BTC and ETH). Nikolaos is the Managing Director and Global Market Strategist at JPMorgan.

Given the strong opposition faced throughout the process, the approval of an ETH ETF was only a minor victory. ETH has now joined the ranks of cryptocurrency ETFs alongside BTC. Some top cryptocurrency networks have been lobbying for the approval of more ETFs covering other cryptos. Nonetheless, these efforts are largely suppressed by the prevailing view that most cryptocurrencies are securities rather than commodities like Bitcoin. Indeed, Ripple won a victory against the SEC in a case where the SEC sought to classify XRP as a security. The SEC’s vague regulatory framework worked against it.

Optimism is Growing

While the chances of SOL and XRP ETFs being approved currently seem slim, the situation could improve if new legislation is passed. This legislation would exclude all cryptocurrencies from the securities category, thereby paving the way for the SEC to approve their ETFs. Given the increasing number of legislators joining the cryptocurrency wave and advocating for the technology, this prospect may not be far-fetched.

Sentiment: Neutral