Standard Chartered set to launch XRP ETF next
Industry experts are foreseeing the emergence of Solana and Ripple exchange-traded funds (ETFs) in 2025, following the recent approval of Ethereum ETFs. The progression of ETFs in the cryptocurrency market has been significant, with Bitcoin and Ethereum paving the way.
While some analysts have predicted that Solana would be the next project to receive an ETF, Geoffrey Kendrick of Standard Chartered has suggested that a Ripple (XRP) ETF could also be introduced in 2025. Kendrick stated that the market would anticipate the eventual ETF status of other coins like Solana and Ripple, but this development is more likely to occur in 2025 rather than 2024.
The approval of Spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) has generated momentum for the introduction of other crypto ETFs. Ripple CEO Brad Garlinghouse hinted at this possibility in a social media post celebrating the SEC’s approval, describing it as a momentous occasion for the industry. When asked about the potential for ETFs in February, Garlinghouse expressed a welcoming attitude and believed that multiple ETFs for different tokens were inevitable.
A spot crypto ETF is designed to track the price of a specific cryptocurrency and invest portfolio funds into that particular crypto. These funds are traded on public exchanges but are primarily linked to a specific cryptocurrency. Similar to other funds, crypto ETFs are available on regular stock exchanges, allowing investors to hold them in their standard brokerage accounts.
The path to a spot ETF for XRP faces challenges due to the ongoing lawsuit between Ripple and the SEC. The SEC has accused Ripple of selling unregistered securities, and the outcome of this litigation will not only determine Ripple’s future but also impact the feasibility of an XRP ETF. The legal uncertainty surrounding Ripple has hindered the price of XRP, which is currently valued at $0.53, below its opening price in 2024.
A resolution to the lawsuit is expected in the summer, and if favorable for Ripple, it is likely to result in a price surge for XRP.
The sentiment surrounding spot ETFs is positive for the cryptocurrency industry, both politically and in terms of pricing. The U.S. House of Representatives recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), indicating a welcoming approach to the crypto industry. Moreover, Coinbase has resumed XRP trading in New York after a suspension in 2021 due to the lawsuit, further reflecting a positive sentiment towards the project.
