The recent approval of 8 Ethereum ETFs by the SEC has sparked speculation about the potential approval of XRP and Solana ETFs. Analyst Geoff Kendrick from Standard Chartered believes that the SEC’s new regulatory policy provides hope for other altcoins, like XRP, to obtain approval for their ETFs. While Ripple, the company behind XRP, is currently involved in a lawsuit with the regulator, the possibility of XRP and Solana ETFs being launched in the future is not completely ruled out. With market caps of $74.6 billion and $27.3 billion, respectively, XRP and Solana are positioned well in the crypto market to be considered for ETF approval.
However, despite the renewed interest in ETFs for XRP and Solana, it may still be a few years before investors can access these cryptocurrencies through ETFs. Kendrick projects that it is more likely to be a 2025 story rather than a 2024 one. ETFs offer a convenient way for investors to gain exposure to cryptocurrencies without the complexity of directly acquiring and safeguarding them. By being purchasable through a stock transaction, ETFs provide regulated access to the crypto market backed by the highest regulatory authority in the United States.
The approval of the Ethereum spot ETFs by the SEC did not have the expected bullish impact on the market. In fact, the price of Ethereum dropped by over 5% following the announcement. This negative reaction is not uncommon in financial markets, known as “buying the rumor and selling the news.” A similar pattern was observed in Bitcoin’s behavior after the approval of Bitcoin ETFs earlier in the year. Despite this initial setback, Kendrick remains optimistic about Bitcoin’s price reaching $150,000 by the end of 2024, following the approval of the Ethereum ETF.
In conclusion, the approval of Ethereum ETFs by the SEC has opened the door for other cryptocurrencies like XRP and Solana to potentially obtain approval for their ETFs. While the timeline for this approval may be a few years away, the possibility of XRP and Solana ETFs entering the stock market is gaining traction. Investors and institutions looking to gain exposure to these cryptocurrencies may soon have a regulated and convenient way to do so through ETFs. With Kendrick’s projections for Bitcoin’s price to soar, the future of cryptocurrency ETFs looks promising for investors seeking to diversify their portfolios.
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