As the cryptocurrency landscape evolves, recent approvals of Ethereum spot ETFs have sparked speculation about the future of other cryptocurrency ETFs.
Analysts from major banks, such as Geoff Kendrick of Standard Chartered, predict that ETFs for Solana (SOL) and XRP might emerge by 2025.
This could mark a significant turning point in the ongoing debate about whether cryptocurrencies should be classified as securities, potentially opening the door for a new wave of investment opportunities.
Contents
Approval of Cryptocurrency ETFs Beyond BTC and ETH in 2025?
Geoff Kendrick, an analyst at Standard Chartered Bank, has predicted that ETFs for other cryptocurrencies might be approved in 2025, following the recent approval of an Ethereum spot ETF in the United States. This forecast was reported by “The Block” and other media outlets.
On May 24, 2024, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 filings for Ethereum spot ETFs submitted by eight companies, raising expectations for the official commencement of trading in Ethereum spot ETFs within the cryptocurrency industry.
To begin trading Ethereum spot ETFs, another document called the “S-1 form” also needs approval. This means the official start of trading could take a few days to several months. However, attention is now turning to ETFs for other cryptocurrencies.
Geoff Kendrick does not expect ETFs for other altcoins to materialize in 2024, but he does see potential for their approval in 2025.
A Pivotal Moment in the Cryptocurrency vs. Securities Debate?
Kendrick believes that the approval of the Ethereum spot ETF indicates that “the SEC does not consider ETH to be a security,” suggesting that other cryptocurrencies similar to ETH might also not be classified as securities.
This is because some cryptocurrencies share core technological similarities with Ethereum. Therefore, it could be challenging for the SEC to argue that these technologically similar cryptocurrencies are securities.
Kendrick also mentioned that “the cryptocurrency industry currently has political support despite divided opinions,” describing the situation in the U.S. as a “true turning point.”
Will SOL and XRP ETFs Be Approved?
Geoff Kendrick highlighted Solana (SOL) and XRP as examples of cryptocurrencies that might have their ETFs approved next.
Regarding XRP, the ongoing court case with Ripple has already concluded that “XRP itself is not a security,” increasing the likelihood of an XRP spot ETF being approved.
For SOL, although there have been claims in the lawsuit against the cryptocurrency exchange Coinbase that “cryptocurrencies like SOL, ADA, and MATIC are securities,” if ETH is determined not to be a security, there is hope that SOL might also be approved.
There is also a growing demand for ETFs of other cryptocurrencies. The Shiba Inu (SHIB) community, for instance, has initiated a petition for the realization of a SHIB ETF, reflecting the high expectations for cryptocurrency ETFs beyond BTC and ETH.
>> Click here for the latest ETF-related news
-
US SEC Approves All 19b-4 Applications for Ethereum Spot ETFs | High Hopes for Launch Within the Year
The U.S. SEC has approved all 19b-4 applications for Ethereum spot ETFs from eight companies, paving the way for their launch on U.S. stock exchanges. Read on to learn more about this significant development.
続きを見る