Geoffrey Kendrick, an analyst at Standard Chartered, suggested that once the Spot Ethereum ETF is launched, it could pave the way for other cryptocurrencies like Solana (SOL) and Ripple (XRP) to receive regulatory approval by 2025.
This marks a significant shift towards recognizing cryptocurrencies as legitimate financial assets. Moreover, the anticipated approval of spot Ethereum ETFs is likely to draw substantial investments by the year’s end.
SEC’s Shifting Approach to Cryptocurrencies and ETH ETF Approval
Geoffrey Kendrick, a researcher at Standard Chartered specializing in forex and crypto assets, highlighted a significant shift at the Securities and Exchange Commission (SEC) with the approval of Ethereum (ETH) ETFs. This decision implies that ETH and potentially similar cryptocurrencies are not considered securities, setting a precedent for others like Solana (SOL) and Ripple (XRP).
The classification of cryptocurrencies remains a crucial topic in regulatory discussions. Kendrick noted that XRP faced a significant legal battle over its security classification in 2023. With cryptocurrencies sharing technological similarities to ETH, Kendrick argued that the SEC would find it difficult to classify these assets as securities while maintaining regulatory consistency. This evolving stance points towards a future of broader acceptance and a clearer regulatory framework for cryptocurrencies.
Political Support and Regulatory Shifts in the US Cryptocurrency Market
Geoffrey Kendrick from Standard Chartered emphasized bipartisan political backing for cryptocurrencies in the United States, marking a pivotal moment. This support is expected to catalyze regulatory reforms, seen as increasingly inevitable rather than speculative. Kendrick anticipates these changes will facilitate the approval of more crypto ETFs, providing diversified investment options and potentially attracting substantial capital into these assets.
Looking at market dynamics, Kendrick projected continued dominance by Bitcoin (BTC) and Ethereum (ETH) in the cryptocurrency market. He highlighted metrics such as the Sharpe ratio to indicate their established reliability as investment choices. Kendrick suggested that leveraging this foundation, certain cryptocurrencies could emerge as formidable competitors in the market.
Forecast for Ethereum (ETH) Investments and Market Impact
Geoffrey Kendrick of Standard Chartered projected substantial investments in Ethereum (ETH) following the approval of spot ETFs by the end of the year. He anticipated that the combined use of Bitcoin (BTC) and Ethereum (ETH) in investment portfolios would gain traction, bolstered by recent SEC decisions. This trend could enhance the legitimacy of the cryptocurrency industry, attracting significant capital inflows.
Expectations for ETH ETFs and Price Predictions
Kendrick estimated that trading for ETH ETFs could commence next month, with potential inflows ranging between $15 billion to $45 billion within the inaugural year. He reiterated his forecast that ETH could reach a price target of $8,000 by year-end, citing robust investor interest and anticipated asset performance.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
