The altcoin market is experiencing a surge of renewed optimism on May 25, 2024, as the shockwaves from the U.S. Securities and Exchange Commission’s approval of spot Ethereum ETFs continue to ripple through the cryptocurrency ecosystem. While Bitcoin hovers near $69,000 and Ethereum trades above $3,700, the bigger story for altcoin enthusiasts is what comes next — and major financial institutions are already placing their bets.
TL;DR
- Standard Chartered predicts Solana and XRP could be the next crypto ETF candidates after Ethereum
- ETH ETF approval implies SEC no longer classifies Ethereum as a security, opening the door for other tokens
- Solana experienced volatile trading, plummeting 10% before recovering alongside the broader market
- Meme coins Dogecoin and Shiba Inu are recovering, posting gains as risk appetite returns
- Analysts expect BTC and ETH dominance to rise before the next altcoin rotation begins
Standard Chartered Eyes Solana and XRP as Next ETF Contenders
The SEC’s landmark decision to approve eight spot Ethereum ETFs on May 23 has fundamentally altered the regulatory landscape for cryptocurrencies. The approval implicitly acknowledges that Ethereum is not a security — a classification that could have profound implications for other digital assets that share similar technological foundations.
British multinational bank Standard Chartered is already looking ahead. Geoffrey Kendrick, head of forex and digital assets research at the bank, believes that Solana and XRP are the natural next candidates for ETF status following Ethereum’s breakthrough.
“For other coins, for example SOL and XRP, markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one,” Kendrick noted. “For now, Bitcoin and Ether dominance will rise, with selective ‘next in line’ winners as well.”
The logic is straightforward. The SEC’s decision to approve ETH ETFs means the regulator accepts Ethereum as a commodity rather than a security. Since many altcoins share similar blockchain architectures and decentralized governance models, it becomes increasingly difficult for the SEC to maintain that they are securities while Ethereum is not.
“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. This represents a significant shift from the stance of SEC Chairman Gary Gensler, who has long maintained that nearly all tokens besides Bitcoin qualify as unregistered securities.
Solana’s Wild Ride Amid ETF Optimism
Solana has had a turbulent week, emblematic of the broader altcoin market’s volatility. At one point, SOL plummeted approximately 10% as the Ethereum ETF news triggered a dramatic rotation of capital from altcoins into ETH. The initial sell-off reflected a “Bitcoin and Ethereum first” mentality as traders repositioned for the new institutional reality.
However, Solana’s fundamentals remain strong. The network continues to attract developers and users with its high-throughput, low-cost transaction architecture. The prospect of a future SOL ETF, even if it is a 2025 event according to Standard Chartered, provides a powerful narrative catalyst that could sustain interest in the token over the medium term.
For now, though, the immediate market dynamics favor Bitcoin and Ethereum. Total crypto market capitalization has surpassed $2.7 trillion, but the gains are concentrated in the two largest assets. This pattern typically precedes a later-stage altcoin rotation, where capital flows from BTC and ETH back into higher-beta assets like SOL.
XRP’s Regulatory Cloud Continues to Lift
Ripple’s XRP has been one of the most closely watched altcoins in the regulatory space, given the SEC’s ongoing lawsuit against Ripple Labs. The Ethereum ETF approval strengthens the argument that XRP should not be classified as a security, and market participants are increasingly pricing in a favorable resolution to the case.
The SEC had previously named both SOL and XRP as unregistered securities in various enforcement actions. However, the ETH ETF approval creates a precedent that makes it harder for the regulator to maintain a blanket classification of these tokens as securities. The crypto industry’s growing political support on both sides of the aisle in Washington is also tilting the regulatory landscape in favor of clearer, more accommodating rules.
Standard Chartered described the Ethereum ETF approval as a “true watershed moment” and reiterated its previous prediction that ETH could reach $8,000. If such price targets materialize, the spillover effect into major altcoins like SOL and XRP would be substantial.
Meme Coins Show Signs of Life
While institutional capital flows dominate the headlines, the meme coin sector is also showing signs of recovery. Dogecoin and Shiba Inu, the two largest meme coins by market capitalization, are posting gains as overall risk appetite returns to the crypto market.
The recovery in meme coins is typically a lagging indicator in crypto market cycles. When Bitcoin and Ethereum rally first, followed by major altcoins, meme coins tend to benefit from the residual risk-on sentiment. The current price action suggests that the market is transitioning through the early stages of this rotation pattern.
For traders watching the meme coin space, the key question is whether the BTC and ETH rally has enough momentum to sustain a broader altseason. The ETH ETF launch timeline and the pace of institutional inflows will be the primary drivers of this dynamic in the coming weeks.
What the Altcoin Landscape Looks Like Heading Into June
The cryptocurrency market is entering a pivotal period. With $2.7 billion in Bitcoin and Ether options expiring on May 24 and another $4.3 billion set to expire on May 31, according to Deribit data, volatility is likely to remain elevated through the end of the month.
For altcoin investors, the strategy is becoming clearer. In the near term, Bitcoin and Ethereum dominance is expected to increase as institutional capital flows into the newly approved ETF products. However, the medium-term outlook for fundamentally strong altcoins like Solana and XRP remains compelling, especially if the regulatory environment continues to thaw.
The Ethereum ETF approval has done more than just create a new investment product — it has fundamentally challenged the SEC’s “everything is a security” framework. As that framework crumbles, the path to broader altcoin adoption becomes clearer, and the prospect of a diversified crypto ETF market moves from speculation toward inevitability.
Why This Matters
The Ethereum ETF approval is not just a win for ETH holders — it is a gateway event that could unlock institutional access to the entire altcoin market. Standard Chartered’s prediction of Solana and XRP ETFs may be a 2025 story, but the market is already repositioning for that reality. Investors who understand the sequencing of capital flows — from BTC to ETH to major altcoins to speculative assets — will be best positioned to navigate the volatility ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
sol dumped 10% on the eth etf news before recovering. classic rotation panic. if you sold that wick you have my condolences
kendrick at standard chartered has been fairly accurate on crypto calls. his 2025 timeline for sol and xrp etfs sounds optimistic but the sec just flipped on eth so who knows anymore
the sec approving eth etfs while the ripple case is still ongoing is peak regulatory inconsistency. either something is a security or it isnt. you cant have it both ways
btc and eth dominance rising before alt rotation is exactly what happened post-bitcoin etf launch. history doesnt repeat but it rhymes
doge and shiba inu recovering on etf speculation is so 2021. some things in crypto never change