Renowned cryptocurrency podcaster Lark Davis anticipates the U.S. Securities and Exchange Commission (SEC) greenlighting additional spot Exchange-Traded Funds (ETFs) for alternative cryptocurrencies later this year, following the recent approval of numerous spot Bitcoin ETFs.
Sharing his insights on Saturday, Davis began by highlighting Ethereum, underscoring its potential to surge to $4,000 by May 23rd, driven by expectations of approval for a spot Ethereum ETF.
Davis based his analysis on a report from Standard Chartered Bank, which suggests that the SEC is likely to approve a spot Ethereum ETF by the specified date. He further emphasized the significance of the $4,000 target, drawing parallels to Bitcoin’s performance prior to the approval of its spot ETF.
Expect Further Altcoin ETFs
The crypto expert also elaborated on his perspective regarding Ethereum’s ETF approval, suggesting it could act as a catalyst, initiating a surge of additional altcoin ETFs. This influx of ETFs could draw increased liquidity into the cryptocurrency realm.
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 speculated on the emergence of spot ETFs for Dogecoin, XRP, Chainlink, Avalanche, Solana, Cardano, Shiba Inu, and others by the end of the year. Notably, major players like Franklin Templeton, with $1.5 trillion in assets under management, have shown particular interest in Solana, indicating the likelihood of a Solana ETF following Ethereum’s approval.
Financial giants like BlackRock, Fidelity, and VanEck have actively applied for spot Ethereum ETFs, with SEC decisions expected by May. However, optimism for additional altcoin spot ETF approvals is tempered by the SEC’s scepticism towards cryptocurrencies.
The ongoing SEC vs Ripple lawsuit is a focal point, with a ruling anticipated in April. This ruling’s outcome holds significant implications for approving diverse ETFs. If the SEC contests the ruling, it could delay the ETF approval process. Conversely, a favourable outcome for Ripple may ease the way for altcoin ETF approvals, albeit amid challenging bureaucratic procedures.
