Standard Chartered, one of the leading global banks, has predicted that Solana and XRP will soon receive their own exchange-traded funds (ETFs) for digital assets.
Standard Chartered, one of the leading global banks, has predicted that Solana and XRP will soon receive their own exchange-traded funds (ETFs) for digital assets. This statement comes in the wake of the U.S. Securities and Exchange Commission's (SEC) approval of eight spot Ethereum ETFs, allowing traditional investors to purchase shares tracking the price of the second-largest cryptocurrency. The SEC's decision marks a significant milestone and follows the approval of spot Bitcoin ETFs earlier this year.
Geoffrey Kendrick, head of crypto research and emerging market foreign currencies at Standard Chartered, believes it's only a matter of time before other major digital coins also receive ETF status. While he expects this development to occur in 2025 rather than 2024, Kendrick emphasizes the potential for Solana (SOL) and XRP to gain the ETF wrapper status.
The approval of Ethereum ETFs surprised many industry observers and analysts, as the SEC had shown little engagement with asset managers seeking to launch these funds. However, fund managers adjusted their paperwork to expedite the process, leading to the SEC granting approval. This decision is unexpected given the SEC's previous crackdown on the crypto industry and allegations that Ethereum should be classified as a security rather than a commodity.
Kendrick further explained that coins similar to Ethereum, including XRP, are likely not considered securities by the SEC due to their core technological similarities. The SEC previously claimed that certain coins, including XRP, constituted securities. However, a 2023 court ruling determined that programmatic sales of XRP to retail investors did not qualify as securities.
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