- The SEC’s approval of Spot Ethereum ETFs has sparked discussions among analysts about potential ETF launches for other altcoins.
- Geoffrey Kendrick from Standard Chartered Bank has joined the conversation, predicting that the SEC might approve crypto ETFs for coins like Solana (SOL) and Ripple’s XRP by 2025.
- Kendrick previously described the Ethereum ETF launch as imminent, indicating that the SEC does not view ETH as a security.
Discover the latest insights on the potential launch of Solana and XRP ETFs and their impact on the crypto market.
Will Solana and XRP ETFs Become a Reality?
As the market looks ahead, analysts believe that the approval of such ETFs in 2024 is unlikely. This is due to the multi-step process involved in ETF approval, which means that even if applications are submitted immediately, decisions may be postponed until the following year.
Technological Similarities and Regulatory Challenges
Kendrick, who heads forex and digital assets research at Standard Chartered, noted that some coins have technologies so similar to ETH that it would be challenging for the SEC to treat them differently. This perspective suggests that other altcoins might follow ETH’s regulatory path.
BTC and ETH Predictions
Meanwhile, Kendrick expects Bitcoin (BTC) and Ethereum (ETH) to dominate the market, particularly in terms of Sharpe ratio, benefiting other coins as well. He continues to forecast strong inflows for spot Bitcoin ETFs and a potential BTC price of $150,000 by the end of the year.
On May 23, the SEC approved 19b-4 forms for spot Ether ETFs, with applicants including Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin receiving approval in a single omnibus order. However, S-1 registrations still need to be signed before trading can commence.
Future Outlook for ETH ETFs
Kendrick believes that a portfolio including both Bitcoin and Ethereum ETFs could be highly attractive, further validated by the SEC’s recent decision on ETH. He predicts that trading for ETH ETFs will begin next month and maintains his year-end ETH price target of $8,000. Previously, he estimated that these funds could attract between $15 billion and $45 billion in inflows within their first year.
Conclusion
In summary, the approval of Spot Ethereum ETFs by the SEC has opened the door for potential ETFs for other altcoins like Solana and XRP. While the approval process may extend into 2025, the market remains optimistic. Kendrick’s predictions for BTC and ETH highlight the growing interest and potential for significant inflows into these assets. Investors should keep an eye on regulatory developments and market trends to make informed decisions.
