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Solana (SOL), XRP may be possible candidates for ETFs, says Standard Chartered
With the approval of an important process in the race to launch a spot ether (ETH) exchange-traded fund (ETF), industry leaders are already wondering which cryptocurrency could be next.
Standard Chartered (STAN) said it believes in Solana (SUN) or Ripple’s XRP could be the next competitors, but not before 2025.
“For other coins (e.g. SOL, XRP), markets will also await their eventual ETF status, although this is likely a 2025 story, not 2024,” said analyst Geoffrey Kendric. “For now, bitcoin and ether dominance will increase, with selective “next in line” winners as well.”
The Securities and Exchange Commission (SEC) on Thursday approved Forms 19b-4 filed by prospective issuers. While this is an important step in the race to launch a spot ether ETF, it is only one of two ways that need approval from the regulator.
The SEC could take weeks, if not months – even potentially indefinitely – to approve the S-1 document, which so far has only been filed by a few potential issuers.
Several industry experts have suggested that SOL would be a logical choice for a third ETF, given its similarities to Ethereum.
Bernstein Brokerage said in a note on Thursday that given Ethereum’s classification as a commodity, the token could follow a similar path. Solana is the third largest cryptocurrency after bitcoin and ether by market value. This excludes stablecoin Tether (USDT) and Binance Coin (BNB).
CORRECTION (24 May 2024, 15:14 UTC): Fixes XRP symbol in title.