This year 2024, the US SEC (Securities and Exchange Commission) has given the green light to two types of cryptocurrency ETFs (Exchange Traded Funds). In January, spot Bitcoin (BTC) ETFs were approved, followed by spot Ethereum (ETH) ETFs earlier this month.
This development has sparked a conversation about which cryptocurrency will be next to receive an ETF—Solana (SOL), Ripple’s XRP, Shiba Inu (SHIB), or another contender. In an interview with CNBC, BKCM founder Brian Kelly suggested that Solana (SOL) might be the next cryptocurrency to gain ETF approval.
Bloomberg analyst James Seyffart concurred with Kelly, asserting that an Solana ETF would see higher demand than most other digital assets, excluding BTC and ETH. Seyffart also mentioned that the Financial Innovation and Technology for the 21st Century (FIT21) bill would expedite the launch of an SOL ETF.
Will the Solana ETF debut before the XRP ETF?
Seyffart states that Ripple’s ongoing lawsuit with the SEC is an obstacle for an XRP ETF this year. However, Ripple CEO Brad Garlinghouse remains optimistic that the SEC will approve an XRP ETF. Garlinghouse points out that XRP and BTC are the only cryptocurrencies with regulatory clarity.
Geoffrey Kendrick, head of crypto research and emerging market foreign currencies at Standard Chartered, believes it is only a matter of time before the SEC approves more crypto ETFs.
He also suggests that Solana (SOL) and XRP are top candidates for such approval. Kendrick also notes that the SEC likely does not view cryptocurrencies like XRP, which share core technological similarities with ETH, as securities.
Our Thoughts
While the debate over which cryptocurrency will be next to receive an ETF continues, it is clear that there is great potential for both Solana (SOL) and XRP in this space. As more and more institutional investors look to diversify their portfolios with digital assets, the demand for ETFs will likely increase.
Also Read: Shiba Inu (SHIB) ETF Approval: A Game-Changer for Crypto Investors?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
