Standard Chartered: XRP ETF next

Analysts predict spot Solana and Ripple ETFs in 2025 following approval of Ethereum ETFs.

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

Some analysts predicted that the next ETF project would be Solana, but Standard Chartered’s Geoffrey Kendrick reiterated that the Ripple (XRP) ETF could also arrive in 2025.

“For other cryptocurrencies (e.g. SOL, XRP), markets will also look forward to their eventual ETF status, but that is likely a story for 2025, not 2024,” Kendrick said.

After the U.S. Securities and Exchange Commission (SEC) confirmed the approval of Spot Ethereum ETFs, momentum for other crypto ETFs is growing.

Ripple CEO Brad Garlinghouse hinted at this possibility with a social media post celebrating the SEC’s approval, calling it a “major” event for the industry.

When asked about the possibility of an ETF in February, Garlinghouse said: “We would certainly welcome that and I think it is inevitable that there will be multiple ETFs around different tokens.”

A spot crypto ETF tracks the price of a specific crypto and invests portfolio funds in that crypto. These funds are traded on public exchanges but generally track a specific crypto. Like similar funds, crypto ETFs are listed on regular exchanges, and investors can hold them in standard brokerage accounts.

In other words, crypto ETFs allow retail investors to gain direct exposure to crypto prices without owning the assets directly.

XRP’s path to spot ETF

The ongoing lawsuit between Ripple and the SEC, in which the SEC accuses Ripple of selling unregistered securities, poses a significant obstacle to the spot ETF. The outcome of this case will be crucial in determining not only the future of Ripple, but also the viability of the XRP ETF.

Legal uncertainty around Ripple has pulled back the price of XRP. It is currently priced at $0.53, below its 2024 opening price of $0.62.

A lawsuit decision is expected this summer, and if it is positive, there will be a price increase in XRP.

positive emotion

This spot ETF sentiment comes at a positive time for the crypto industry, both politically and pricing-wise. On Wednesday, the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), essentially communicating with the crypto industry that the US welcomes crypto.

.@SECGov‘s approval of a spot ETF for Ether is the latest sign that cryptocurrency is being recognized as a mature asset class and underscores the need for Congress to pass a regulatory framework to protect consumers and provide clear rules for the industry.

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

Additionally, crypto exchange Coinbase resumed XRP trading in New York state after being suspended in 2021 due to litigation, reflecting positive sentiment towards the project.