The US Securities and Exchange Commission (SEC) has recently approved both Bitcoin (BTC) and Ethereum (ETH) ETFs. This has sparked speculation about which cryptocurrency might be next in line for ETF approval, with Solana (SOL) and Ripple's XRP being the primary contenders.
Market analysts are divided on which cryptocurrency will secure the next ETF approval. Brian Kelly, CEO of BKCM, and Daniel Yan, co-founder of Matrixport, both suggest that Solana could be the next candidate. Institutional views, including those from Standard Chartered, also indicate potential approval for both XRP and Solana ETFs by 2025. This follows the recent approval of Ethereum ETFs, which has intensified discussions on the next potential contender.
Solana is viewed as a strong contender for ETF approval due to its popularity, second only to Bitcoin and Ethereum. The increased attention and investment in Ethereum post-Bitcoin ETF approval bolster the likelihood of a Solana ETF. Experts suggest that demand for a spot Solana ETF could potentially surpass that of Bitcoin and Ether ETFs.
The XRP community remains optimistic about an ETF approval by 2025. A recent survey revealed that 66.1% of respondents believe in the likelihood of XRP ETF approval within this timeframe. However, Ripple's ongoing legal issues with the SEC present a significant obstacle. Despite this, Ripple CEO Brad Garlinghouse maintains confidence, highlighting that XRP and BTC are the only cryptocurrencies with regulatory clarity, which might favour XRP's approval prospects once the legal issues are resolved.
Despite the enthusiasm for Solana and XRP, JPMorgan has expressed scepticism. The financial giant doubts the SEC will approve ETFs for any cryptocurrency other than Bitcoin and Ethereum in the near future. This caution suggests that any new ETF approval could face substantial regulatory hurdles.
Solana and XRP are the leading candidates for the next cryptocurrency ETF approval. The market remains watchful to see which, if any, will succeed amidst the regulatory landscape.