The ether ETF’s SEC approval has stimulated the market; Solana and XRP ETFs may follow by 2025, according to Standard Chartered.
TakeAway Points:
- Solana (SOL) and Ripple’s XRP, after Ether and Bitcoin, may be candidates for an ETF by 2025, according to Standard Chartered.
- While the full clearance process may take many weeks or months, the SEC has approved a key form for spot Ether ETFs.
- Apart from stablecoins, Solana is the third-biggest cryptocurrency by market capitalization, behind Bitcoin and Ether.
The Approval of Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has approved a spot ether (ETH) exchange-traded fund (ETF), which is a big step forward for the cryptocurrency market. Setting a precedent for other digital assets, this clearance is viewed as a critical regulatory respite for the cryptocurrency industry.
This is a significant step in the battle to launch a spot ether ETF as the SEC authorised forms 19b-4 filed by potential issuers. That final approval, however, may take weeks or even months for the S-1 paperwork, which is also necessary.
The market has already benefited from the ether ETF’s certification. Early in the week, ether saw a spike in price as Bloomberg ETF experts raised the likelihood that the SEC would approve spot ether ETFs from 25% to 75%.
Reports that the SEC had requested applicants to revise their papers, indicating a larger chance of approval, added to this optimism. Brokerage firm Bernstein stated that the ether ETF’s acceptance would increase the likelihood that Solana (SOL), ETH’s competitor, will be classified as a commodity.
Next in line are Solana and XRP
After the ether ETF was approved, focus shifted to other ETF candidates that might be approved, like Solana (SOL) and Ripple’s XRP. According to Geoffrey Kendrick, Head of Research for Forex and Digital Assets at Standard Chartered, the approval of Solana and XRP ETFs could come as early as 2025.
As Kendrick points out, other cryptocurrencies may follow the SEC’s lead in how it handles Ethereum. If Ethereum is not categorised as a security, other coins that share similar features, like Solana and XRP, may also escape this label.
Brokerage firm Bernstein also supports this view, pointing out that Solana, the third-largest cryptocurrency by market capitalization after Ethereum and Bitcoin, may develop similarly to Ethereum.
The classification of cryptocurrencies as securities or commodities has important implications, particularly with regard to applications and approvals for ETFs. The SEC may decide not to classify ETH-like coins as securities in light of the acceptance of the ether ETF.
Market Responses and Forecasts
The ether ETF’s acceptance has caused significant market reactions. Bernstein observes that since spot ETFs were approved, Bitcoin has increased by 75%, and it anticipates that ether will see a similar price movement.
With 38% of the cryptocurrency locked in staking, smart contracts, and layer 2 chains, and 66% of the ETH supply remaining unchanged over the past 12 months, Ether’s free float and supply appear more appealing than Bitcoin’s. This implies that once the ether ETF is fully operating, there is a significant chance of price gain.
According to cryptocurrency researcher The Birb Nest, journalists and cryptocurrency Twitter users are starting to talk more about a Solana ETF. The expectation for a Solana ETF is rising, even though regulation will take some time.
It is recommended that market players create a “full-blown meme mania” around Solana, akin to the frenzy around meme tokens like as Dogecoin (DOGE) and Shiba Inu (SHIB). Market activity and price changes could be significant as a result of the growing interest in Solana.
