The crypto industry anxiously awaits the launch of spot Solana and XRP ETFs after the U.S. Securities and Exchange Commission (SEC) successfully approved spot Bitcoin and Ethereum ETFs this year. The recent cues and developments from Solana and XRP communities have driven demand for exchange-traded funds from institutional investors. However, an ETF expert explains there are still many headwinds despite some chances.
Don’t Expect Solana and XRP ETFs For Years: Nate Geraci
Nate Geraci, president of The ETF Store and co-founder of The ETF Institute, said additional spot crypto ETF approvals like those for Solana or XRP seem unlikely. Keeping politics aside, the current market conditions and regulatory stance make it difficult to envision spot SOL ETF or spot XRP ETF for a year or two.
“Nothing would indicate a spot Solana or XRP ETF is possible in next yr or two given current state,” Geraci said in an X post on September 14.
He believes the odds are low under the current administration. The possibility might hinge on the outcome of the US elections in November. There may be a potential shift in crypto regulatory policies if there’s a change in administration.
The market speculates major shift with Republican presidential candidate Donald Trump and Massachusetts Senate candidate John Deaton’s victory. Pro-XRP lawyer Deaton’s win is linked to a potential boost in XRP exchange-traded fund. However, Democrat Kamala Harris’ win in the presidential elections will put the crypto industry in limbo.
Factors Fueling Crypto ETFs Sentiments
Solana Exchange-Traded Fund Prospects
The speculation surrounding spot Solana exchange-traded fund gained immediately after the approval of proof-of-stake Ethereum for exchange-traded funds by the US SEC.
Furthermore, VanEck and 21Shares filing for spot SOL ETF fueled investor sentiment and SOL price. However, VanEck and 21Shares 19b-4 filings for SOL ETF are now not available on Cboe website, experts claimed the US SEC is reluctant to approve them.
After Brazil approved two spot Solana ETFs, VanEck head of research Matthew Sigel revealed that the US may need a regulatory “soft fork” before Solana ETF can get approval.
Solana price fell after delays in ETF approval by the US SEC. This has dampened investor optimism, potentially driving bearish sentiment. SOL price is currently trading at $138, down over 2% in a month.
XRP ETF Odds
The odds of XRP ETF were boosted by Ripple’s partial in the US SEC v. Ripple Labs lawsuit. Recent developments by US SEC and Ripple executives have hinted at no appeal in XRP lawsuit.
This clarity, alongside developments like Grayscale XRP Trust and XRP Index by CME, underscores the integration of XRP into traditional financial systems, which further boosted the odds.
Ripple president Monica Long commented on a potential XRP ETF launch. Moreover, Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have remained confident about the odds.
XRP price currently trades at $0.576, witnessing a nearly 10% upside momentum this week after the latest developments including Grayscale announcing XRP Trust.
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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