The recent approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has ignited discussions about the future of other altcoins. 

Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicted that ETFs for Solana (SOL) and Ripple’s XRP could receive approval by 2025.

He believes that while the market is optimistic about the future, the approval for Solana and XRP ETFs is unlikely to occur in 2024. The regulatory approval process involves several steps, and even if applications are made immediately, the decision could be postponed to 2025.

SEC's Stance on Crypto

Kendrick highlighted that the SEC’s approval of spot Ethereum ETFs implies that ETH is not classified as a security by the agency. This sets a significant precedent for other cryptocurrencies with similar core technologies. 

"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 explained in a statement to The Block. 

This sentiment reflects a broader understanding that regulatory clarity for Ethereum could extend to other major cryptocurrencies.

According to analysts at The Birb Nest, crypto Twitter and the media are discussing Solana ETFs, so the Solana ETF "is probably going to happen."

Political Support and Market Impact

The approval of Ethereum ETFs signifies growing political backing for cryptocurrencies in the U.S. Kendrick described this development as a "true watershed moment." He believes that the key question is not if but when further regulatory changes will happen. 

The bipartisan political support is seen as crucial for the broader acceptance and integration of crypto assets into mainstream financial products. This support could expedite the approval of ETFs for altcoins like Solana and XRP.

Current Approval Status

Worth noting, on May 23, the SEC approved 19b-4 forms for spot Ether ETFs after weeks of anticipation and silence from the financial watchdog. Eight applicants, including Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin, received approval in an omnibus order. 

Bloomberg ETF analyst, James Seyffart, mentioned that while the 19b-4 filings have been approved, the funds still require the S-1 documents to be signed off. He noted that spot Ether ETFs could attract approximately 20% of the flows that spot Bitcoin ETFs have seen. Conversely, Balchunas offers a more conservative estimate of 10-15%.