Popular crypto podcaster Lark Davis sees the U.S. Securities and Exchange Commission (SEC) approving more spot Exchange-Traded Funds (ETFs) for altcoins later this year after the approval of several spot Bitcoin ETFs last month.
Sharing his insights on Saturday, the pundit began by highlighting Ethereum, emphasizing its potential surge to $4,000 by May 23rd, driven by the anticipation of a spot Ethereum ETF approval.
Notably, David’s thesis came from Standard Chartered Bank, suggesting in a report that the SEC is likely to approve a spot Ethereum ETF on the specified date. He further emphasized the significance of the $4,000 target, drawing parallels to Bitcoin’s performance before its spot ETF approval.
More Altcoin ETFs to Follow
The crypto expert also discussed how he sees Ethereum’s ETF approval as a catalyst that could trigger a wave of more altcoin ETFs, attracting more liquidity into the cryptocurrency space.
“What happens when we get an Ethereum ETF? What do you think the market’s going to pivot to almost immediately? That we’re going to get more altcoin ETFs.” Wrote Davis.
He went on to speculate on the possibility of spot ETFs for Dogecoin, XRP, Chainlink, Avalanche, Solana, Cardano, Shiba Inu and others emerging by the year’s end.
Notably, major players like Franklin Templeton, with a $1.5 trillion asset under management, have previously expressed particular interest in Solana, suggesting the likelihood of a Solana ETF post-Ethereum ETF approval.
Of note is also the active involvement of financial giants like BlackRock, Fidelity, VanEck, and others, all of whom have submitted applications for spot Ethereum ETFs, with the SEC slated to make decisions on some of these applications by May.
That said, while there is optimism regarding the SEC potentially approving additional altcoins spot ETFs, some experts foresee significant hurdles ahead, particularly with the SEC’s evident scepticism and lack of enthusiasm towards cryptocurrencies.
Of particular note is the ongoing SEC vs Ripple lawsuit, a focal point for the crypto community. Despite a previous ruling asserting that XRP is not a security, the SEC persists in its classification. The outcome of this suit, anticipated in April, holds significant implications for approving diverse ETFs. If the SEC chooses to contest the ruling post-lawsuit, it may result in a delay in the overall ETF approval process.
Conversely, if Ripple secures a favourable outcome through either a court-imposed fine or a settlement, it may pave the way for the approval of additional altcoins, albeit with the expected difficult bureaucratic procedures mandated by the SEC.