As an analyst with a background in financial markets and experience following the cryptocurrency space, I believe that Solana (SOL) has a higher likelihood of getting its own ETF before XRP based on current developments and market sentiment.
As a researcher studying the latest trends in the cryptocurrency market, I’ve noticed that there has been significant progress regarding Spot Ethereum Exchange-Traded Funds (ETFs). This development has sparked debates among industry experts about which crypto token could potentially be the next one to receive an ETF. Two tokens, Solana (SOL) and XRP, have recently garnered particular attention. Experts are now engaged in deliberations as to which of these two tokens may secure the coveted spot for the upcoming crypto ETF.
Expert Says A Solana ETF Is Next
In a recent interview on CNBC, Brian Kelly, the founder of digital assets investment firm BKCM, expressed his belief that Solana could be the next cryptocurrency token to receive an Exchange-Traded Fund (ETF). According to him, Bitcoin, Ethereum, and Solana represent the “Big 3” in this market cycle. Given that Bitcoin and Ethereum already have their own ETFs, it’s a strong possibility that Solana will follow suit.
According to Bloomberg analyst James Seyffart, there is a strong likelihood that a Solana Exchange-Traded Fund (ETF) will experience higher demand than most other digital assets apart from Bitcoin and Ethereum. However, he anticipates that the launch of such an ETF would take place within a few years following the establishment of a Commodity Futures Trading Commission (CFTC)-regulated futures market for Solana.
Expert: Seyffart noted that legislation like the Financial Innovation and Technology for the 21st Century (FIT21) bill, which is being considered by Congress, could expedite the launch of a Solana Exchange-Traded Fund (ETF). Given that the Securities and Exchange Commission (SEC) has taken legal action against Coinbase and Kraken over Solana’s security, Congress’ involvement becomes crucial.
Seyffart pointed out that the application of this security label might make the potential approval of a SOL ETF a bumpy journey. This challenge could pose an obstacle for other crypto tokens, as Bitcoin and Ethereum seem to be the only exceptions when it comes to the SEC’s view on them not being considered securities.
Based on her assessment, Cathie Wood, the CEO of Ark Invest, anticipates that only Bitcoin and Ethereum Spot Exchange-Traded Funds (ETFs) will be authorized for listing in the US. It would come as a shock if anything besides Bitcoin and Ether were to receive SEC approval for such funds.
The Likelihood Of An XRP ETF
Market analysts have weighed in on the possibility of an imminent XRP release. However, for an XRP exchange-traded fund (ETF) to materialize, the Securities and Exchange Commission (SEC) first needs to determine that XRP is not classified as a security. According to CoinShares’ head of product, Townsend Lansing, this approval seems elusive, while Scott Johnsson of Van Buren Capital has gone so far as to label the prospect “extremely unlikely.”
Expert: Seyffart has brought up the prospect of an XRP Exchange-Traded Fund (ETF) being introduced imminently. Following his stance on a SOL ETF, he underlines the necessity of XRP futures trading on a regulated exchange such as the Chicago Mercantile Exchange (CME). However, he posits that the ongoing SEC lawsuit against Ripple is a significant hurdle preventing an XRP ETF from materializing this year.
The ongoing legal battle between the SEC and Ripple might accelerate the approval process for a Solana ETF over an XRP ETF. Yet, Ripple’s CEO Brad Garlinghouse remains optimistic that XRP will eventually be included among the cryptocurrencies eligible for an ETF once regulatory bodies give the green light to other crypto funds. Notably, XRP and Bitcoin are the only crypto assets with a clearer regulatory landscape at present.
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2024-05-25 21:11