Crypto influencer Lark Davis anticipates further approvals by the U.S. Securities and Exchange Commission (SEC) for spot Exchange-Traded Funds (ETFs) covering altcoins later this year, building on the recent approvals of multiple spot Bitcoin ETFs.
Image by guaxipo from Pixabay
The crypto analyst also shared his perspective on how the approval of an Ethereum ETF could act as a catalyst for a surge in altcoin ETFs, potentially drawing more liquidity into the cryptocurrency market.
"When we witness the approval of an Ethereum ETF, what do you anticipate the market will immediately shift its focus to? The likelihood of more altcoin ETFs," Davis remarked.
He further speculated on the emergence of spot ETFs for various altcoins such as Dogecoin, XRP, Chainlink, Avalanche, Solana, Cardano, and Shiba Inu by the end of the year.
Notably, industry heavyweights like Franklin Templeton, boasting a substantial $1.5 trillion asset under management, have shown particular interest in Solana, indicating the possibility of a Solana ETF following the approval of an Ethereum ETF.
Moreover, prominent financial institutions like BlackRock, Fidelity, and VanEck have all submitted applications for spot Ethereum ETFs, with the SEC expected to render decisions on some of these applications by May.
However, while optimism abounds regarding the potential approval of additional altcoin spot ETFs by the SEC, experts caution that significant challenges lie ahead, especially considering the SEC's evident skepticism and cautious stance towards cryptocurrencies.
The ongoing SEC vs. Ripple lawsuit is of particular concern within the crypto community. Despite a previous ruling affirming that XRP does not qualify as a security, the SEC persists in its classification. The resolution of this lawsuit, anticipated in April, holds significant implications for the approval of diverse ETFs. If the SEC chooses to challenge the ruling post-lawsuit, it could result in delays in the overall ETF approval process.
On the other hand, if Ripple secures a favorable outcome through a court-imposed fine or a settlement, it may pave the way for the approval of additional altcoins, albeit with the anticipated bureaucratic hurdles imposed by the SEC.