Standard Chartered Predicts Timeline For XRP ETF

The cryptocurrency space is abuzz with speculation regarding the timing of a potential XRP ETF approval by the U.S. Securities and Exchange Commission (SEC).

Following the recent green light for several spot-based Ethereum ETFs, industry experts are closely following regulatory clues to gauge the likelihood of similar approvals for other prominent crypto assets.

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XRP ETF: A 2025 Possibility

In a recent statement, Godfrey Kendrick, a leading analyst at Standard Chartered and the current head of forex and digital assets research offered his insights on the potential timeline for an XRP ETF.

Kendrick believes that a decision on an XRP ETF could materialize in 2025, suggesting that the SEC might grant approval next year. This prediction hinges on the SEC’s recent approval of Ethereum ETFs, which some analysts interpret as a shift in the regulatory landscape.

Ripple Lawsuit Not a Hurdle for XRP ETF Approval

Some market participants have expressed concerns that the ongoing lawsuit between the SEC and Ripple Labs, could impede the approval of an XRP ETF. However, Kendrick dismisses this notion. He argues that the SEC’s green light for Ethereum ETFs signifies that the regulator doesn’t classify ETH as a security.

By extension, Kendrick suggests that other altcoins with similar characteristics to Ethereum, including XRP, might not be categorized as securities either. The analyst contends that due to the shared technological underpinnings between Ethereum and XRP, it would be challenging for the SEC to designate XRP as a security.

Bipartisan Support Paves the Way for Favorable Regulations

Beyond the SEC’s recent actions, Kendrick highlights the growing political support for the cryptocurrency industry. He points to the recent FIT21 legislation, which garnered bipartisan backing with over 70 Democrats joining forces with Republicans in support of the bill.

According to Kendrick, this display of bipartisanship signifies a potential turning point towards more favorable regulations for the U.S. crypto market.

Potential Inflows for Ethereum ETFs

Shifting focus to the newly approved Ethereum ETFs, Kendrick offers projections on potential inflows for these products. He estimates these ETFs could attract between $15 billion and $45 billion within their first year of operation.

It’s important to note that while the SEC has approved the underlying filings (19b-4) for these spot ETFs, they haven’t yet begun trading in the U.S. market.

Further regulatory hurdles remain, as the SEC still needs to approve the S-1 filings associated with these funds. Experts anticipate a potential delay in the SEC’s decision on these filings.

Read Also: $800B Standard Chartered: Bitcoin Could Reach $50,000 This Year and $120,000 by the End Of 2024

Kendrick’s Bullish Outlook on Ethereum Price

In addition to his insights on XRP and ETF regulations, Kendrick predicts Ethereum’s future price. He projects ETH to rise to $8,000 by the end of 2024.

The cryptocurrency industry is witnessing a period of heightened anticipation regarding regulatory developments. Analysts like Kendrick at Standard Chartered offer their perspectives on the potential timeline for an XRP ETF approval, the impact of recent regulatory actions on the broader market, and the future trajectory of prominent crypto assets like Ethereum.

While some uncertainties remain, Kendrick’s analysis suggests a potentially positive outlook for the industry, with increased institutional involvement and a more favorable regulatory landscape on the horizon.

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