Standard Chartered announces plans for XRP Exchange-Traded Fund (ETF)
Analysts are predicting that Solana and Ripple may have their own spot ETFs by 2025, following the recent approval of Ethereum ETFs. This development has sparked speculation about which cryptocurrency will be the next to receive an ETF, with some experts pointing to Solana and others suggesting Ripple (XRP).
Geoffrey Kendrick, an analyst at Standard Chartered, believes that both Solana and Ripple have the potential to be approved for ETF status in the future. However, he believes that this is more likely to happen in 2025 rather than 2024.
The approval of Spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) has created momentum for the introduction of other cryptocurrency ETFs. Ripple CEO Brad Garlinghouse has hinted at the possibility of an XRP ETF, expressing his support for such a development in a social media post celebrating the SEC’s approval of Ethereum ETFs.
A spot crypto ETF is designed to track the price of a specific cryptocurrency and invest portfolio funds into that cryptocurrency. These funds are traded on public exchanges and allow investors to gain exposure to cryptocurrency prices without directly owning the assets.
However, the ongoing legal battle between Ripple and the SEC, in which Ripple is accused of selling unregistered securities, poses a significant obstacle to the introduction of an XRP ETF. The outcome of this lawsuit will not only determine Ripple’s future but also impact the possibility of an XRP ETF. The uncertainty surrounding the lawsuit has affected the price of XRP, which is currently below its opening price for 2024.
The resolution of the lawsuit is expected this summer, and if the outcome is favorable for Ripple, XRP could experience a price increase.
The sentiment towards spot ETFs is positive for the cryptocurrency industry, both politically and in terms of pricing. The passing of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the U.S. House of Representatives signals a welcoming attitude towards the crypto industry in the United States. Additionally, the resumption of XRP trading on Coinbase in New York after a suspension in 2021 due to the lawsuit reflects a positive sentiment towards the project.
