Prominent ETF expert Nate Geraci highlights the wild turn of events in the crypto industry, saying people are now discussing SOL and XRP ETFs within a week when many thought the SEC could deny all Ethereum fund applications.
Nate Geraci, a prominent crypto ETF expert and co-founder of The ETF Institute, has highlighted a sudden shift in sentiment regarding crypto-focused ETFs.
A Shift in Sentiment Regarding Crypto ETFs
According to Geraci, the broader sentiment in the market over the past week was that the U.S. SEC would deny all Ethereum ETF applications.
However, within one week, there has been a notable shift in discussion among market participants, who are now discussing XRP and SOL ETFs.
A week ago, everyone thought spot eth ETFs would be denied…
Now people talking about sol & xrp ETFs.
Wild turn of events.
— Nate Geraci (@NateGeraci) May 27, 2024
Optimism Over XRP ETF Soars After SEC Approves Ethereum Funds
This shift in sentiment comes after the U.S. SEC approved eight applications for Ethereum exchange-traded funds. As reported earlier, the SEC approved 194-b filings for Ethereum ETFs. However, the regulatory agency’s decision on the S-1 filing is still pending.
Following the partial approval of the Ethereum ETFs, the industry has been debating which crypto asset is next in line for an exchange-traded fund, with assets like XRP topping the list.
Interestingly, top crypto stakeholders like Ripple CEO Brad Garlinghouse indirectly speculated that XRP ETFs could be on the horizon. While many XRP enthusiasts also share the same sentiment, the major question revolves around the possible timeline for the approval.
Also, some community members expressed concern about whether the ongoing SEC v. Ripple lawsuit could mitigate the chances of XRP ETFs going live. In a recent interview, Godfrey Kendrick, Standard Chartered’s head of digital asset research, addressed these concerns.
Kendrick predicted that an XRP ETF could be a 2025 story, suggesting that the regulator may approve the fund by next year. Additionally, Kendrick emphasized that the SEC’s approval of multiple Ethereum ETFs indicates that the regulator does not consider ETH a security. Therefore, he contended that the SEC cannot label XRP a security because the asset’s core technology is similar to Ethereum’s.
Meanwhile, no asset manager has officially applied to launch an XRP ETF. In the meantime, market participants are anticipating the SEC’s approval of the S-1 documents filing for Ethereum ETF to enable the products to commence trading in the United States.
