Solana
Solana and XRP ETFs could be approved in 2025
The SEC’s approval of Ethereum ETFs suggests that ETH is not classified as a security, potentially setting a precedent for other cryptocurrencies with similar technologies.
The recent approval of Ethereum spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has sparked discussions about the future of other altcoins.
Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicted that ETFs for Solana (SOL) and Ripple’s XRP could be approved by 2025.
He believes that while the market is optimistic about the future, approval of Solana and XRP ETFs is unlikely to occur in 2024. The regulatory approval process involves several steps, and even if applications are filed immediately, the decision could be postponed until 2025.
SEC Position on Crypto
Kendrick pointed out that the SEC’s approval of Ethereum spot ETFs implies that ETH is not classified as a security by the agency. This sets an important precedent for other cryptocurrencies with similar core technologies.
“In several cases, the underlying technology is so similar to ETH that it would be difficult for the SEC to claim that they are securities given the position of ETH,” Kendrick explained in a statement at The Block.
This sentiment reflects a broader understanding that regulatory clarity for Ethereum could extend to other major cryptocurrencies.
According to analysts at The Birb Nestcrypto Twitter and media are discussing Solana ETFs, so the Solana ETF is “probably going to happen.”
They will try to promote the narrative that $ SOL is another ETF.
It will probably happen, but they definitely need more time and they need to introduce a #crypto regulatory framework.
It will take time, but before they do, in the meantime we can trigger a… https://t.co/kHDZ1SMTwx
– THE NEST ₿IRB (@TheBirbNest) May 24, 2024
Political support and market impact
THE approval Ethereum ETFs signify growing political support for cryptocurrencies in the United States. Kendrick described this development as a “true watershed moment.” He believes the key question is not if, but when further regulatory changes will take place.
Bipartisan political support is seen as crucial for broader acceptance and integration of crypto assets into traditional financial products. This support could accelerate the approval of ETFs for altcoins like Solana and XRP.
Current approval status
Of note, on May 23, the SEC approved Forms 19b-4 for spot Ether ETFs after weeks of anticipation and silence from the financial watchdog. Eight applicants, including Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity and Franklin, received approval under an omnibus order.
Bloomberg ETF analyst James Seyffart mentioned that even though 19b-4 filings have been approved, the funds still require signing S-1 documents. He noted that spot Ether ETFs could attract about 20% of the flows that spot Bitcoin ETFs have seen. Conversely, Balchunas offers a more conservative estimate of 10 to 15%.