In the wake of the launch of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States, the cryptocurrency industry is now eyeing the subsequent significant development: introducing XRP and Solana ETFs or keeping them off the exchange. Such a shift can also deepen the crypto market’s legitimacy and thus attract even more institutional investors.
During the Ripple Swell 2024 conference, Tim McCourt, a senior managing director of the CME group, was asked about an XRP ETF possibility. McCourt also believes that the first significant signal toward creating an XRP ETF has been made, which indicates growth in the variety of digital assets accessible through ETFs.
McCourt’s remarks followed a significant event a week before the US Securities and Exchange Commission (SEC) received Canary Capital’s second application for an XRP ETF. Bloomberg ETF analyst Eric Balchunas corroborated that, noting that Bitwise Asset Management had already applied for the first XRP ETF.
XRP Leads ETF Discussions But Faces Growth Challenges Alongside Solana
The cryptocurrency market has benefited dramatically from ETF launches, with BTC and Ether as crucial growth indicators. According to McCourt, these products contribute to cryptocurrency approval, opening the road for applications from conventional investors.
“There is no other financial product that has grown the industry as fast as ETFs,” McCourt said during the Ripple Swell panel.
Nevertheless, XRP’s key-focused highlight of an XRP ETF has considerable strength, although this token has remained stagnant compared to other cryptocurrencies. While XRP was up just over 8% last year, Bitcoin soared by over 154% during the same period, as noted in Cointelegraph. This difference has led to doubts about the potential of an XRP ETF as a trigger for token price appreciation.
Besides XRP, the chances of a physical Solana ETF have also created possibilities. With the Solana ETF’s approval in August of 2024, Brazil paved the way for other countries to approve it. Despite the ambiguity of a US-based spot, Solana ETF, many experts think it may become a potent clue in charge of some price if it is green-lit.
Alejo Pinto, the ex-IBM blockchain growth lead and founder of Solana Layer-2 network Lumio, remarked that the appearance of a Solana ETF will certainly attract incredible investment attention, adding that such approval will be a ‘big win’ for the rest of the crypto industry.
Other experts, including Manthan Dave, co-founder of Palisade, a digital asset custody company powered by Ripple, said Solana ETFs could be realized by the end of 2024.
Due to the unprecedented changes in the regulation of digital currencies, both the XRP and Solana ETFs can also revolutionize the crypto market and provide new opportunities to investors who want to bet on its future.
