JPMorgan has voiced skepticism about the U.S. Securities and Exchange Commission’s (SEC) readiness to approve more cryptocurrency exchange-traded funds (ETFs), The Block reported.

The SEC last week approved spot Ethereum ETFs, which had initially fueled optimism among investors and analysts.

JPMorgan’s Nikolaos Panigirtzoglou, managing director and global market strategist, said that the regulator views most cryptocurrencies as securities, casting doubts in additional crypto ETF approvals.

“The decision by the SEC to approve ETH ETFs is already stretched given the ambiguity about whether Ethereum should be classified as security or not,” Panigirtzoglou told The Block.

“We don’t think 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.”

The importance of this development lies in its potential influence on the cryptocurrency market, as ETF approvals are often linked to increased institutional investment and market stability.

Additionally, the SEC’s decisions are indicative of the changing regulatory environment for digital assets.

In the wake of the SEC’s approval Ethereum ETFs, the crypto market has experienced a bullish trend, with Solana’s value approaching US$170.

Financial institutions like Standard Chartered have predicted that the SEC’s recent actions could lead to further ETF approvals, possibly for Solana and XRP, by 2025.

Despite JPMorgan’s caution, the market has reacted positively to the SEC’s decision on Ethereum ETFs, with U.S. Bitcoin ETFs witnessing favorable inflows, reflecting a boost in investor confidence.

The SEC’s go-ahead for 19b-4 forms for eight Ethereum ETF applicants has laid the groundwork for trading to begin soon, subject to the SEC’s final approval of S-1 registrations.