Ethereum
Solana and XRP ETFs after Ethereum and Bitcoin approvals: Standard Chartered
More crypto ETFs are coming.
This is according to the British multinational bank Standard Chartered, whose digital assets researcher said in a note on Friday that Solana And XRP will soon get their own exchange-traded funds.
The United States Securities and Exchange Commission (SEC) approved yesterday eight points Ethereum AND F. This unexpected and historic move means traditional investors can now buy stocks that track the price of the second-largest digital asset. This decision follows the approval of the spot Bitcoin ETFs in January.
Geoffrey Kendrick, head of emerging markets cryptocurrency and foreign exchange research at Standard Chartered, said it is now only a matter of time before other major digital coins receive ETF wrapper status. .
“For other coins (e.g. SOL, writing.
“Other ETH-like coins (a number of which the SEC says were securities in the XRP 2023 case) are also not securities,” Kendrick continued. “In several cases, the underlying technology is so similar to ETH that it would be difficult for the SEC to claim they are securities given ETH’s position.”
Industry observers and analysts were pessimistic about the approval of Ethereum spot ETFs this week, as the SEC had barely engaged with asset managers hoping to abandon the funds.
Then, fund managers wanting to launch the products started frantically filling out modified documents move the process forward, amid speculation about a politically fueled change in philosophy. Thursday afternoon, the SEC gave them the green light.
The approval of Ethereum ETFs is surprising because the regulator had been cracking down – and harshly, according to some lawmakers – on the crypto industry. A high-profile lawsuit against the Wall Street watchdog even alleged that the SEC wanted to designate Ethereum as a security and not a commodity.
In 2023, Ripple, a fintech company whose founders launched XRP, won a partial victory on the field against the SEC when a judge ruled that programmatic sales of XRP to retail investors were not considered securities, as the SEC had alleged.
Although the judge ruled that $728 million in institutional sales contracts did indeed constitute unregistered securities sales, the industry interpreted the news as positive.
Under the chairmanship of the SEC, Gary Gensler, the the regulator said a number of coins and tokens are securities and therefore break the law by offering sales to investors.
Kendrick added in his note that by the end of the year, Ethereum is expected to reach $8,000 per coin.
The bank researcher said previously that Bitcoin could reach $150,000 per coin by the end of 2024. He added today that the price was still realistic given the continued success of ETFs.
Edited by Andrew Hayward