Standard Chartered analyst says other crypto ETFs such as SOL, XRP 'is likely a 2025 story'

Following the recent approval of ether spot exchange-traded funds, Standard Chartered Bank analyst Geoffrey Kendrick says that the next chapter of crypto ETFs may be around the corner in 2025.

"For other coins (eg. SOL -5.42% , XRP -0.000030% ) markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story not a 2024 one," Kendrick, head of forex and digital assets research at Standard Chartered Bank, said Friday in a statement to The Block.

The approval of ether spot ETFs on Thursday suggests that ETH is not classified as a security by the SEC, thereby implying that other ETH-like coins, which were previously under scrutiny in cases such as the 2023 XRP case, may also not be considered securities, according to Kendrick.

"In several cases the core technology is so similar to ETH it would be difficult for the SEC to claim they were securities given the ETH position," Kendrick said. "The crypto industry now seems to have political backing on both sides of the aisle."

He called this backing for crypto in the U.S. a "true watershed moment." Kendrick said that the next question is not whether but when the market will see further regulatory changes.

'BTC+ETH dominance will rise'

While the market looks ahead for more crypto ETFs, for now, Kendrick expects dominance in bitcoin and ether will increase, particularly in a Sharpe ratio context, with certain "next in line" winners emerging as well.

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Kendrick continues to expect a strong inflow for spot bitcoin ETFs and, subsequently, a $150,000 BTC price target by year-end. "A portfolio containing both BTC and ETH ETFs is likely attractive and the industry has been further validated by the SEC's decision on ETH," Kendrick said.

Regarding ETH ETFs, Kendrick expects trading to commence next month and reiterates that such funds could bring in inflows worth $15-$45 billion within the first 12 months. He also reiterates his previous projection of ETH reaching $8,000 by year-end.

The SEC only approved 19b-4 forms for spot ETH ETFs on Thursday, while S-1 registrations are still pending for sign-off so that the funds can begin trading. The approval for 19b-4 forms was given to eight applicants — Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin — all in one omnibus order.