We do the research and you get the alpha!
Get exclusive reports and access key insights on airdrops, NFTs, and more. Subscribe to Alpha Reports today and step up your game.
To Alpha Report
More cryptocurrency ETFs are coming.
This comes according to an announcement by British multinational bank Standard Chartered, whose digital asset researcher said in a note on Friday: Solana and Ripple We will soon be getting our own exchange traded fund.
U.S. Securities and Exchange Commission (SEC) Approved yesterday 8 Spot Ethereum ETFs. This unexpected and historic move means that traditional investors can now buy shares that track the price of the second-largest digital asset. The move follows the approval of a spot Bitcoin ETF in January.
Jeffrey Kendrick, head of crypto research and emerging markets foreign currencies at Standard Chartered Bank, said it's only a matter of time before other major digital coins gain ETF wrapper status.
“For other coins (e.g. SOL, XRP), the market will likely be watching for eventual ETF status, but this will likely be a 2025 story rather than a 2024 story,” he wrote.
“Other ETH-like coins (some of the coins that the SEC argued were securities in its 2023 XRP lawsuit) are also not securities,” Kendrick continued. “In some cases, the core technology is so similar to ETH that it would be difficult for the SEC to argue they are securities given ETH's position.”
Industry observers and analysts were pessimistic about the approval of a spot Ethereum ETF this week, as the SEC did little to negotiate with asset managers who wanted to scrap the funds.
After that, fund managers who wanted to launch this product Rushing to submit amended documents Amid speculation of a politically motivated change of policy, the SEC urged the process to move forward. By Thursday afternoon, the SEC gave the go-ahead.
The approval of an Ethereum ETF comes as a surprise because regulators have been cracking down on the crypto industry, with one high-profile lawsuit against the Wall Street watchdog being: Alleged The SEC wanted to designate Ethereum as a security rather than a commodity.
In 2023, Ripple, the fintech company whose founder launched XRP, A partial victory was achieved The lawsuit was filed against the SEC after a judge ruled that the SEC's programmatic sales of XRP to retail investors did not qualify as a security.
Although a judge ruled that the $728 million institutional distribution agreement constituted an unregistered securities sale, the industry reacted positively to the news.
Under SEC Chairman Gary Gensler, Regulators claim Many coins and tokens are securities, meaning it is against the law to sell them to investors.
Kendrick added in the note that Ethereum should reach $8,000 per coin by the end of the year.
The bank's researcher previously said Bitcoin could reach $150,000 per coin by the end of 2024. He added today that the price remains realistic due to the continued success of ETFs.
Editor: Andrew Hayward
Daily Report Newsletter
Enjoy our top news, original features, podcasts, videos and more every day.
