The crypto community continues to debate which crypto asset has the best chance of securing a spot ETF after the U.S. SEC gave a green light to Ethereum-based ETFs.
Mentions of XRP and Solana (SOL) have persisted during these discussions. For instance, a recent survey assessing community opinions on which cryptocurrency is next in line for ETF approval placed options for XRP, Solana, and “Others.”
At press time, 63% of participants favored XRP, 25.9% supported Solana, and 11.1% voted for other cryptocurrencies.
Which crypto asset has the best odds of getting approved for an #ETF next? 🤔
— iTrustCapital (@iTrustCapital) May 30, 2024
While the survey is still open for responses, the current turnout confirms the popular sentiment in the crypto scene. The XRP Army believes XRP is more deserving of an ETF than even Ethereum and Bitcoin. The view is rooted in the fact that XRP alone enjoys a clear regulatory position in the U.S.
Despite these sentiments, prominent asset managers such as BlackRock and Fidelity have successfully pursued the listing of Bitcoin and Ethereum ETFs in the U.S., with XRP being notably absent from their efforts.
Solana’s Chances of an ETF
Industry pundits believe the recent green light for Ethereum spot ETFs could pave the way for similar investment vehicles for other cryptocurrencies. Some analysts, including Bloomberg’s ETF specialist James Seyffart, have pointed to Solana. Supporting factors include its appeal to institutional investors and its competitive stance alongside Ethereum.
On the other hand, Seyffart does not see a Solana spot ETF coming sooner than 2026, owing to essential prerequisites for listing, such as a Solana futures market regulated by the Commodity Futures Trading Commission (CFTC).
Besides, the analyst stressed that the SEC’s view that SOL is a security could further postpone the prospects of a Solana ETF.
The Case for XRP
For XRP, Seyffart maintains a more skeptical outlook. Factors hurting XRP’s chances for a spot ETF include Ripple’s current legal battle with the SEC and the absence of a CFTC-regulated futures market for XRP.
Seyffart views these conditions as likely to take considerable time to materialize, thereby extending the timeline for the possibility of an XRP ETF.
Other Cryptos
Interestingly, widely followed community pundit Adam Cochran has argued for ETFs of Litecoin (LTC) and meme coin Dogecoin to precede any other asset. According to him, LTC and DOGE are in demand, making their case more compelling. To some extent, Seyffart agrees with the view.
Nonetheless, Ripple CEO Brad Garlinghouse expressed confidence that the SEC will eventually approve an XRP ETF and ETFs for Cardano and Solana. Garlinghouse anticipates that the approval process for these ETFs could be protracted.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
