- Following the approval of Ethereum ETFs, the market anticipates ETFs for other cryptos like Solana and XRP by 2025.
- Standard Chartered analyst predicts more ETFs and suggests that the non-security status of Ethereum may extend to similar coins.
- Political changes, especially a potential Trump presidency, could significantly influence US crypto regulations and enforcement.
Spot Bitcoin exchange-traded funds (ETFs) have been trading for months and last week saw the in-principal approval of Ethereum ETFs, so naturally attention is shifting toward other funds. Also last week, we reported that Brian Kelly, CEO and founder of digital asset investment company BKCM LLC, thought a Solana ETF was a no-brainer, now Standard Chartered is backing up this sentiment.
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According to Geoffrey Kendrick, an analyst at the British multinational bank, we can expect more funds in 2025.
Kendrick told The Block who they believe will be next in line for a spot fund:
For other coins (for example Solana and XRP) markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story not a 2024 one.
Geoffrey Kendrick, Standard Chartered Kendrick added that, based on a likely ETH ETF, it can be assumed that Ether is not classified as a security, leading to the assumption that ETH-like coins are also not securities. However, in several lawsuits the US Securities and Exchange Commission (SEC) is alleging that Solana is indeed a security.
On the other hand, XRP received clarity that it’s not a security when the judge said that only direct sales to institutional investors constituted a violation of US securities laws.
Yet, in another case a judge ruled that even sales on secondary markets such as exchanges are considered securities and fall under the authority of the SEC. So, time will tell what the final verdict will be around crypto asset securities, as Gary Gensler likes to call them.
Donald Trump Win May Deliver Final Push for Crypto
Kendrick said crypto has now seemingly received “political backing on both sides of the aisle”, pointing toward ETH ETFs and a crypto bill just passed by the US House named FIT21. Also, if Trump gets elected in November, he may even interfere in any attempts by the SEC to continue to rule by enforcement.
Trump has called out the current administration, accusing them of trying to kill Bitcoin. It will be interesting to see if he follows through with his promised pro-crypto attitude.
According to Kendrick the question is now not if but when the US market sees more changes to crypto regulation.
The analyst expects continued strong interest and inflow in the exchange-traded funds and sees BTC reaching US$150K (AU$226K) and ETH US$8K (AU$12K) by the end of 2024.
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