Analyst Geoff Kendrick from Standard Chartered recently suggested that cryptocurrencies XRP and Solana (SOL) could be next in line for spot ETFs following the historic approval of 8 Ethereum ETFs by the Securities and Exchange Commission (SEC).
Kendrick noted that the SEC’s new regulatory policy provides fresh hopes for other altcoins, previously subject to lawsuits like XRP, to obtain approval to launch their ETFs. “For other coins (e.g., SOL, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one,” Kendrick said.
Is an XRP ETF Approaching?
As Kendrick pointed out, the new SEC policy or interpretation opens the door to new cryptocurrency ETFs. However, currently, Ripple is embroiled in a multi-year lawsuit against the regulator.
In this new scenario, leading cryptocurrencies like Solana and XRP could soon be the first potential candidates to have their tradable financial instruments in stock markets. Furthermore, both coins are firmly positioned in the crypto market, with market caps of $74.6 billion and $27.3 billion, respectively.
Although the possibility of XRP and Solana ETFs reignites interest in ETFs, according to Kendrick’s projections, this scenario still seems distant. Therefore, enthusiasts of these cryptocurrencies may need to exercise patience and wait until at least 2025 to invest in them through an ETF.
The new ETFs facilitate access to crypto assets like XRP and SOL for investors who prefer to avoid the complexity of acquiring and directly safeguarding them. By being purchasable through a simple stock transaction, ETFs provide investors and institutions with a quick and easy way to gain regulated exposure to cryptocurrencies backed by the highest regulatory authority in the United States.
Crypto Market Reacts to Ethereum ETF
The long-awaited approval of Ethereum spot ETFs by the SEC did not generate the bullish momentum many anticipated. Immediately after the historic announcement, the price of Ethereum dropped by over 5%, falling from nearly $3,937 to just under $3,686, according to CoinGecko.
This initial negative reaction mirrored the recurring pattern in financial markets of “buying the rumor and selling the news.” In January, Bitcoin exhibited a similar behavior following the historic approval of Bitcoin ETFs, dropping for almost two weeks before starting the rally that led it to seek its all-time high of nearly $74,000.
However, as Kendrick highlighted, reiterating his previous projection, the approval of the Ethereum ETF bodes well for Bitcoin to reach $150,000 by the end of 2024.
