In the wake of the groundbreaking approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), analysts at Standard Chartered Bank are projecting that Solana (SOL) and Ripple’s XRP could be the next cryptocurrencies to receive the green light for ETF offerings, potentially as early as 2025.
Geoffrey Kendrick, the head of forex and digital assets research at Standard Chartered, expressed his belief that while the market is eagerly anticipating further crypto ETF developments, the approval for Solana and XRP ETFs is unlikely to materialize in 2024. However, he anticipates that these assets will garner interest from investors regarding their eventual ETF status in the coming year.
The recent SEC approval of Ethereum spot ETFs suggests that the agency does not classify Ether as a security, a decision that could have far-reaching implications for other cryptocurrencies with similar underlying technologies. Kendrick noted that “in several cases, the core technology is so similar to ETH it would be difficult for the SEC to claim they were securities given the ETH position.”
Regulatory Clarity Paves the Way
This regulatory clarity surrounding Ethereum’s status has reignited discussions about the potential for other altcoins to follow suit. Analysts at The Birb Nest, a prominent crypto research firm, have observed that the narrative of a Solana ETF is gaining traction on crypto Twitter and in the media, suggesting that such a development is “probably going to happen.”
Kendrick described the SEC’s approval of Ethereum ETFs as a “true watershed moment,” reflecting the growing political backing for cryptocurrencies in the United States. He believes that the key question is not if, but when further regulatory changes will occur, paving the way for broader acceptance and integration of crypto assets into mainstream financial products.
Institutional Interest on the Rise
The approval of spot ETFs for Bitcoin and Ethereum has already sparked significant institutional interest in the digital asset market. With the potential for Solana and XRP ETFs on the horizon, analysts anticipate a surge in demand from institutional investors seeking exposure to these assets through regulated investment vehicles.
While the timeline for approval remains uncertain, the crypto community eagerly awaits further developments in the ETF landscape, as regulatory clarity and institutional adoption continue to shape the future of the digital asset industry.
