Standard Chartered says markets will look ahead to exchange-traded funds (ETFs) of cryptocurrencies other than bitcoin and ether, but “this is likely a 2025 story.” They believe that the SEC approving spot ethereum ETFs suggests that the securities watchdog does not view ether as a security and that other coins similar to ether will also not be viewed as securities.
Standard Chartered Discusses SEC Approving Spot ETFs for Cryptos Beyond Bitcoin and Ether
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SEC’s Potential Approval of Other Crypto ETFs
Standard Chartered Bank’s head of Digital Assets Research, Geoffrey Kendrick, discussed the prospects of spot exchange-traded funds (ETFs) for cryptocurrencies beyond bitcoin and ether on Friday. His remarks came after the U.S. Securities and Exchange Commission (SEC) approved eight spot ethereum ETFs the previous day. He opined:
For other coins (eg. SOL, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one.
“For now, bitcoin and ether dominance will rise, with selective ‘next in line’ winners as well,” he added. The analyst believes that the approval of spot ether ETFs indicates that the SEC does not classify ETH as a security, suggesting that other crypto tokens similar to ETH may also not be considered securities.
However, SEC Chair Gary Gensler has avoided directly addressing whether ETH is a security or a commodity. He has repeatedly stated that most crypto tokens, except bitcoin, are securities. Moreover, a recent court document revealed that the SEC initiated an investigation into ETH as a potential security last year.
Kendrick stated:
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 Standard Chartered head of digital asset research expects trading of spot ether ETFs to begin next month, reiterating his previous estimate that these funds could bring inflows worth $15 billion-$45 billion within the first 12 months. He also maintained his prediction that ETH will reach $8,000 by year-end.
Kendrick additionally commented on the U.S. Congress approving several crypto bills. “The crypto industry now seems to have political backing on both sides of the aisle,” he opined. Moreover, he previously stated that a second Trump administration would be broadly positive due to a more supportive regulatory environment.
Do you think the SEC will approve spot XRP ETFs and spot SOL ETFs next? Let us know in the comments section below.
