Standard chartered executive stated that similar to Ethereum, other altcoins previously under the SEC scrutiny, such as the XRP case, could also be absolved of the ‘security’ status.
As the US SEC approved the spot Ethereum ETF on Thursday, May 23, market analysts have started talking about similar investment products for other altcoins. Standard Chartered Bank analyst Geoffrey Kendrick believes that the next chapter of crypto ETFs will unfold next year in 2025.
Kendrick leads the digital assets research at Standard Chartered Bank. speaking to The Block publication on Friday, he said:
“For other coins (e.g. SOL and XRP) markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one.”
Kendrick added that the approval of spot Ether ETFs yesterday suggested that the altcoin isn’t a ‘security’, as stated by the SEC previously. He thus implied that other altcoins previously under the SEC scrutiny, such as the XRP case, could also be absolved of the ‘security’ status. Coinbase’s legal chief also stated yesterday that the approval signifies that Ethereum (ETH) is a commodity. He added:
“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. The crypto industry now seems to have political backing on both sides of the aisle.”
Apart from Kendrick, other market players also joined the chorus for introducing a spot Solana ETF. SkyBridge Capital founder Anthony Scaramucci stated that they would soon be working on getting a Solana ETF ready.
We are going to get a $SOL ETF get ready.
— Anthony Scaramucci (@Scaramucci) May 24, 2024
Bitcoin Dominance Would Continue to Grow
Kendrick anticipates a rise in dominance for both Bitcoin and Ether. He maintains his bullish outlook, particularly expecting significant inflows into spot Bitcoin ETFs, which could drive Bitcoin’s price to reach $150,000 by the end of the year.
“A portfolio containing both BTC and ETH ETFs is likely attractive and the industry has been further validated by the SEC’s decision on ETH,” he said.
On Thursday, the SEC only approved the 19b-4 filings for the spot Ethereum ETF while the S-1 registrations are still pending after which the ETF will begin trading. In terms of Ethereum ETFs, Kendrick anticipates trading to begin next month. He restates his belief that these funds could attract inflows ranging from $15 to $45 billion within the initial 12 months. Additionally, he reaffirms his earlier forecast of Ethereum reaching $8,000 by the end of the year.
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