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Highlights
- JPMorgan doubts SEC approval for Solana and Shiba Inu ETFs due to stringent security classifications.
- Shiba Inu community pushes for a dedicated ETF, filing a petition on February 25.
- 66% optimism in recent poll about XRP ETF approval by 2025.
While there have been recent positive developments in the space of crypto ETFs, including the approval of 8 Ethereum ETFs, JPMorgan is still doubtful about the chances of the US SEC approving similar ETFs for Solana (SOL), XRP, and Shiba Inu (SHIB).
JPMorgan Stance on Crypto ETF’s Approvals
Nikolaos Panigirtzoglou, a managing director and global market strategist at JPMorgan, said that the recent decision of the SEC to approve Ethereum ETFs was ‘’stretched’’ especially given the on-going debate on whether Ethereum should be classified as a security.
Panigirtzoglou stated that as the SEC classifies most other cryptos as securities, it is unlikely that ETFs related to Solana and Shiba Inu will be approved anytime soon.
”We don’t believe that the SEC would go even further by approving Solana or other token ETFs given the SEC has stronger (relative to Ethereum) opinion that tokens outside bitcoin and Ethereum should be classified as securities,” he explained.
As Panigirtzoglou pointed out, the likelihood of more such products receiving SEC approval depends on US lawmakers enacting legislation that asserts that most cryptos are not securities, which does not have legislative backing at the moment.
Are XRP, SHIB ETF’s Looming?
At the same time, the Shiba Inu community is making progress in the creation of a specific ETF. According to a Shytoshi Kusama, who is credited with involvement in the Shiba Inu ecosystem, took to social media platform X to congratulate Ethereum on its ETF approval while suggesting the possibility of a SHIB ETF.
Moreover, on February 25, a petition was filed on change.org urging Grayscale Investments CEO Michael Sonnenshein to consider launching a Shiba Inu-specific ETF. This has come at a time when there is increasing demand for ETFs that track various cryptos, such as Solana and XRP.
Similarly, Ripple (XRP) investors are closely observing the ongoing case between SEC and Ripple, which is crucial for the further development of XRP-based financial instruments. However, there are still legal issues that cloud the possibility of an XRP ETF, but the company’s head, Brad Garlinghouse, is confident about its potential.
On the other hand, other analysts, such as Geoffrey Kendrick from Standard Chartered, hold the opinion that the SEC does not consider tokens like XRP as securities because they are based on technological similarities to ETH.
Will there be an XRP ETF in 2025 ?
— Vet 🏴☠️ (@Vet_X0) May 24, 2024
Concurrently, after the approval of Ethereum ETFs, debates about the future of ETFs for other cryptocurrencies, such as Solana and XRP, have arisen. A poll conducted by an XRP Ledger validator revealed that 66% of the participants expect the SEC to approve an XRP ETF by 2025. This view is supported by Standard Chartered who expects approval of both the SOL and XRP ETFs by the same year.
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