Are Solana and XRP ETFs On the Horizon? ETF Expert Weighs In

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As a seasoned crypto investor with over two decades of experience in the financial markets, I’ve learned to navigate through the turbulent waters of regulatory uncertainty and market volatility. After reading Nate Geraci’s insights on the potential launch of Solana and XRP ETFs, my personal take is that while the prospects are indeed promising, we should exercise patience and temper our expectations.

Anticipation runs high within the cryptocurrency sector as they look forward to the debut of Solana and XRP ETFs that trade in the spot market, following this year’s SEC approval of spot Bitcoin and Ethereum ETFs. The rising interest from Solana and XRP communities, along with institutional investors, has boosted demand for these exchange-traded funds. Yet, a seasoned ETF analyst warns that there are still significant obstacles to overcome, despite some promising possibilities.

Don’t Expect Solana and XRP ETFs For Years: Nate Geraci

Nate Geraci, head of The ETF Store and co-creator of The ETF Institute, stated that it seems improbable to see more spot cryptocurrency ETF approvals, such as those for Solana or XRP, in the near future. Setting aside politics, the present market climate and regulatory outlook make it challenging to imagine a spot SOL ETF or a spot XRP ETF within a year or two.

In a recent post on September 14, Geraci stated that the current situation doesn’t seem to suggest the possibility of a Solana or Ripple ETF within the next year or two.

Under the present leadership, he thinks the chances for favorable outcomes are slim. However, the situation could significantly change depending on who wins the U.S. elections in November, potentially leading to new approaches in cryptocurrency regulations.

The market anticipates significant changes following the possible victories of Donald Trump for the Republican presidential nominee and John Deaton for Massachusetts Senate seat. The potential victory of pro-XRP lawyer Deaton could mean a possible increase in XRP exchange-traded funds. Conversely, if Kamala Harris wins the presidency, it may leave the crypto industry uncertain or on hold.

Factors Fueling Crypto ETFs Sentiments

Solana Exchange-Traded Fund Prospects

Interest in a potential Solana-based exchange-traded fund grew swiftly following the US Securities and Exchange Commission’s endorsement of proof-of-stake Ethereum for exchange-traded funds, sparking speculation about its approval.

Additionally, the application by VanEck and 21Shares for a Solana spot ETF has ignited optimism among investors and boosted Solana’s price. Yet, it appears that the U.S. Securities and Exchange Commission (SEC) may be hesitant to approve these applications, as the 19b-4 filings for SOL ETF by VanEck and 21Shares are no longer visible on the Cboe website, according to financial experts.

Following Brazil’s endorsement of two Solana-based spot Exchange Traded Funds (ETFs), VanEck’s head of research, Matthew Sigel, hinted that the United States might require a more lenient regulatory adjustment or “soft fork” before an approval for a Solana ETF can be granted.

The decrease in Solana’s price occurred following the postponement of ETF approval by the U.S. Securities and Exchange Commission. This has led to a decline in investor enthusiasm, which could be fueling pessimistic market feelings. Currently, SOL is being traded at $138, representing a drop of more than 2% over the past month.

XRP ETF Odds

The likelihood of an XRP ETF has increased due to Ripple’s involvement in the ongoing legal battle between the US SEC and Ripple Labs. Both the US SEC and Ripple’s top officials seem to suggest that they will not be appealing the XRP lawsuit.

The combined presence of innovations such as Grayscale XRP Trust and the XRP Index by CME, along with their impact, clearly highlights XRP’s increased adoption within conventional financial structures, thereby enhancing its likelihood of success.

As an analyst, I’ve recently observed comments from Ripple’s President Monica Long regarding a possible launch of an XRP Exchange-Traded Fund (ETF). Notably, both Ripple’s CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have expressed optimism about the likelihood of this development.

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2024-09-14 10:13