JP Morgan managing director and global market strategist Nikolaos Panigirtzoglou expressed skepticism about the potential 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 approval of spot Ethereum ETFs is already pushing the limits. The classification of Ethereum by the SEC as either a security or a commodity remains ambiguous despite these approvals.

Panigirtzoglou noted that this lack of clarity raises doubts about the approval prospects for other assets:

"We do not believe the SEC would go further by approving ETFs for Solana or other tokens."

He added that the SEC's stance suggests tokens beyond Bitcoin (BTC) and Ethereum (ETH) should be treated as securities, indicating a stricter position compared to Ethereum itself.

Panigirtzoglou acknowledged the possibility of US lawmakers enacting legislation to categorize most cryptocurrencies as non-securities but pointed out that such legislation does not currently exist.

There are differing opinions on the potential for SOL ETFs. Some, like crypto investor Brian Kelly, believe that the approval of ETH ETFs could improve the chances for a Solana ETF, although SOL's classification as a security remains an issue. Bloomberg ETF analyst James Seyffart anticipates that a Solana ETF could succeed in the coming years with legislative developments like FIT21, despite SOL's security status presenting a hurdle. Prediction market odds are pessimistic, with Polymarket indicating a roughly 13% likelihood of the SEC approving a Solana ETF by the end of 2024.

Regarding regulatory treatment, the SEC has previously identified Solana and other altcoins as securities in various enforcement actions. In cases involving Coinbase, Binance, and Kraken, Solana has been described by the SEC as an investment contract and security, particularly in sales involving Simple Agreements for Future Tokens (SAFTs) by Solana Labs.

However, the SEC has not initiated direct enforcement actions against Solana Labs or related entities to date.