Standard Chartered Bank's head of Digital Assets Research, Geoffrey Kendrick, has discussed the potential approval of spot exchange-traded funds (ETFs) for cryptocurrencies other than bitcoin and ether. His comments come after the U.S. Securities and Exchange Commission (SEC) approved eight spot ethereum ETFs. Kendrick believes that the approval of spot ether ETFs indicates that the SEC does not classify ether as a security, suggesting that other crypto tokens similar to ether may also not be considered securities.
However, SEC Chair Gary Gensler has not directly addressed whether ether is a security or a commodity. He has previously stated that most crypto tokens, except bitcoin, are securities. Moreover, it was revealed in a recent court document that the SEC initiated an investigation into ether as a potential security last year.
Kendrick believes that the core technology of several cryptocurrencies is so similar to ether that it would be difficult for the SEC to claim they were securities given the SEC's position on ether.
Standard Chartered expects trading of spot ether ETFs to begin next month and predicts that these funds could bring in inflows worth $15 billion-$45 billion within the first year. Kendrick also maintains his prediction that ether will reach $8,000 by the end of the year.
In addition, Kendrick commented on the approval of several crypto bills by the U.S. Congress, stating that the crypto industry now seems to have political support from both sides. He previously stated that a second Trump administration would be positive for the industry due to a more supportive regulatory environment.
What are your thoughts on the potential approval of spot XRP ETFs and spot SOL ETFs by the SEC? Let us know in the comments section below.