The verge of significant investments in cryptocurrencies like XRP, Ether, Solana, and Shiba Inu by institutions is imminent following the recent surge in spot Exchange-Traded Funds (ETFs). Renowned crypto commentator Lark Davis anticipates the U.S. Securities and Exchange Commission (SEC) greenlighting more spot ETFs for alternative coins later this year, building on the approval of several spot Bitcoin ETFs in the previous month.
Davis, sharing his perspective, particularly focuses on Ethereum, projecting a potential rise to $4,000 by May 23rd, driven by the expectation of a spot Ethereum ETF approval. His insights draw from a report by Standard Chartered Bank, suggesting the SEC’s probable approval of a spot Ethereum ETF on the specified date. He underlines the significance of the $4,000 target, likening it to Bitcoin’s performance prior to its spot ETF approval.
Davis envisions Ethereum’s ETF approval as a catalyst for a surge in more altcoin ETFs, thereby attracting increased liquidity into the cryptocurrency market. He speculates on the likelihood of spot ETFs for various altcoins like Dogecoin, XRP, Chainlink, Avalanche, Solana, Cardano, and Shiba Inu emerging by the end of the year.
Major financial entities like Franklin Templeton, with a substantial $1.5 trillion asset under management, have shown particular interest in Solana, indicating the potential for a Solana ETF following the Ethereum ETF approval. Additionally, prominent players such as BlackRock, Fidelity, and VanEck have submitted applications for spot Ethereum ETFs, with the SEC expected to review some of these applications by May.
However, despite optimism surrounding potential approvals for additional altcoin spot ETFs, there are significant hurdles ahead, notably the SEC’s apparent skepticism towards cryptocurrencies. The SEC vs Ripple lawsuit remains a focal point, with the outcome expected in April holding significant implications for ETF approvals. If the SEC persists in challenging the previous ruling regarding XRP’s security status, it could lead to delays in the ETF approval process. Conversely, a favorable outcome for Ripple through a fine or settlement could pave the way for approving additional altcoins, albeit amidst bureaucratic hurdles mandated by the SEC.
