Standard Chartered: XRP ETF next

As a seasoned crypto investor with a few battle scars and a good dose of skepticism, I’ve seen my fair share of market predictions and hype cycles. But the recent analyst projections of spot Solana and Ripple ETFs in 2025 have piqued my interest.

Analysts are projecting spot Solana and Ripple ETFs in 2025

First, a spot Bitcoin ETF. Then, a spot Ethereum ETF. What is next? 

As a researcher studying the potential development of exchange-traded funds (ETFs) based on cryptocurrencies, I’ve noticed some predictions suggesting Solana as the next viable project for an ETF. However, it’s important to consider other possibilities. For instance, Geoffrey Kendrick from Standard Chartered has expressed that Ripple (XRP) could potentially see the launch of its own ETF by 2025.

Kendrick remarked that the market’s focus for coins like SOL and XRP would eventually shift towards their potential Exchange-Traded Fund (ETF) approval, although this is more of a prospect for 2025 rather than 2024.

Following the SEC’s confirmation that it had given its approval for Spot Ethereum ETFs, there has been growing excitement and anticipation regarding the possibility of other cryptocurrency ETFs being approved.

Brad Garlinghouse, the CEO of Ripple, expressed excitement and significance about the Securities and Exchange Commission (SEC) giving its approval through a social media post, which I consider a significant milestone for the industry.

In February, when questioned about the prospect of an ETF (Exchange-Traded Fund), Garlinghouse responded, “We would be open to it, and I believe it’s only a matter of time before various ETFs emerge, focusing on different cryptocurrencies.”

A crypto exchange-traded fund (ETF) functions by mirroring the price of a specific cryptocurrency and allocating its resources towards that digital asset. These funds are listed on public exchanges and primarily follow the value of the designated crypto. Crypto ETFs operate much like traditional ETFs, allowing investors to hold them in their regular brokerage accounts on stock exchanges.

As a market analyst, I would explain that crypto Exchange-Traded Funds (ETFs) provide a simpler and more convenient method for individual investors to access the price movements of cryptocurrencies without actually holding the digital assets themselves.

XRP’s path to a spot ETF

The ongoing legal battle between Ripple and the SEC, during which the SEC alleges that Ripple illegally sold unregistered securities, poses a major challenge to the creation of a spot exchange-traded fund (ETF) for Ripple’s digital asset XRP. The resolution of this lawsuit will play a pivotal role in shaping not only Ripple’s destiny but also the potential feasibility of an XRP ETF.

As a researcher examining the cryptocurrency market, I’ve noticed that the ongoing legal uncertainty surrounding Ripple has significantly impacted the price of XRP. At present, XRP is trading at around $0.53, which falls short of its projected opening price in 2024, which was set at $0.62.

A lawsuit resolution is expected this summer, and if favorable, XRP should see a price spike.

Positive sentiment

The favorable outlook for this ETF focused on crypto spots is boosted by recent developments in both politics and market pricing. Notably, on Wednesday, the U.S. House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21), indicating a welcoming stance towards cryptocurrency from the American government.

As a seasoned crypto investor, I’m thrilled about the Securities and Exchange Commission (SEC) giving its green light to a spot ETF for Ethereum. This approval is yet another significant milestone indicating that cryptocurrencies are increasingly being recognized as a mature asset class. However, with this growing acceptance comes the urgent need for Congress to establish a regulatory framework. By doing so, we can ensure consumer protection and provide clear guidelines for the industry, enabling it to thrive in a stable and transparent environment.

— Senator Cynthia Lummis (@SenLummis) May 24, 2024

Coinbase, a major cryptocurrency exchange, has restarted XRP trading in New York after a hiatus caused by the ongoing legal action against Ripple. This move indicates a favorable outlook towards the XRP project.

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2024-05-24 20:08