In a recent statement, Nikolaos Panigirtzoglou, managing director and global market strategist at JP Morgan, cast doubt on the likelihood of Solana (SOL) and other crypto ETFs securing regulatory approval. Panigirtzoglou argued that the Securities and Exchange Commission's (SEC) recent decision to approve spot Ethereum ETFs is "already stretched," and the lack of clarity on whether ETH is considered a security or commodity raises questions about the approval of other assets.

Panigirtzoglou pointed out that the SEC's stance on tokens other than Bitcoin (BTC) and Ethereum (ETH) is that they should be classified as securities, which makes it unlikely for Solana or other token ETFs to gain approval. While US lawmakers could potentially create legislation to classify most cryptos as non-securities, such legislation does not currently exist. Despite JP Morgan's skepticism, some commentators remain optimistic about the chances of a SOL ETF. Crypto investor Brian Kelly believes that ETH ETF approvals could increase the odds of a Solana ETF approval, although he acknowledges that SOL's status as a security is an issue. Bloomberg ETF analyst James Seyffart expects a Solana ETF to succeed within years, pending legislation such as the Financial Innovation and Technology for the 21st Century (FIT21) bill, which aims to delineate securities and futures markets.

However, prediction market odds are low, with Polymarket reporting an approximately 13% chance that the SEC will approve a Solana ETF by the end of 2024. The SEC has previously identified Solana and other altcoins as securities in various enforcement cases, including its case against Coinbase, where it stated that Solana was offered as an investment contract and security. The regulator has also highlighted Solana Labs' $23 million Simple Agreement for Future Tokens (SAFTs) as an example of an offer and sale of securities. While the SEC has not initiated an enforcement action against Solana Labs or related parties directly, its stance on Solana and other tokens as securities raises significant hurdles for ETF approval. As the regulatory landscape continues to evolve, it remains to be seen whether Solana and other crypto ETFs will gain the necessary approvals to move forward.