Solana Vs. XRP ETF: Expert Predicts Which One Will Be Approved First
Recent developments with the Spot Ethereum ETFs have led to discussions about which crypto token could have its own ETF next. Solana (SOL) and XRP ETFs have taken center stage, with experts deliberating which one will come first.
Expert Says A Solana ETF Is Next
Brian Kelly, founder of digital assets investment firm BKCM, mentioned during an interview on CNBC that Solana is probably the next crypto token to get its own ETF. He explained that Bitcoin, Ethereum, and Solana are the ‘Big 3’ for this cycle, making it likely that Solana is next since the two foremost crypto tokens already have their respective funds.
Bloomberg analyst James Seyffart also seemed to agree with Kelly, stating that he believes a SOL ETF see more demand than other digital assets besides Bitcoin and Ethereum. However, he claimed a SOL ETF would launch within a few years of getting a CFTC-regulated futures market.
Seyffart added that Congress and market structure bills like the Financial Innovation and Technology for the 21st Century (FIT21) bill will speed up a SOL ETF launch. Congress’ intervention is necessary, considering the Commission has outrightly labeled Solana security in the lawsuit against Coinbase and Kraken.
Seyffart noted that this security label could make the potential approval of a SOL ETF a “very rocky road.” This issue could be a stumbling block to several other crypto tokens since Bitcoin and Ethereum appear to be the only tokens the SEC doesn’t consider securities.
This seems to be why Ark Invest’s CEO Cathie Wood once predicted that there will only likely be Bitcoin and Ethereum Spot ETFs in the US. She added that it would be surprising to see “anything but Bitcoin and Ether being approved by the SEC,”
The Likelihood Of An XRP ETF
Market experts have also discussed the likelihood of an XRP launching soon. CoinShares’ head of product, Townsend Lansing, previously mentioned that the SEC must agree that XRP isn’t a security before an XRP ETF can launch. Van Buren Capital general partner Scott Johnsson remarked that the likelihood of the Commission approving this fund was “very slim.”
Seyffart has also discussed the possibility of an XRP ETF launching soon. Like what he said about a SOL ETF, he mentioned that XRP futures must be traded on a regulated exchange like the Chicago Mercantile Exchange (CME). Meanwhile, he believes that the SEC’s case against Ripple is another reason why XRP ETF cannot happen this year.
The SEC’s case against Ripple seems to be another reason a SOL ETF could launch before an XRP ETF. However, Ripple’s CEO Brad Garlinghouse is confident that XRP will be among the crypto assets that will have its ETF when the SEC is ready to approve other crypto funds, noting that XRP and Bitcoin are the only crypto tokens with regulatory clarity.
Featured image from Yoyodex, chart from Tradingview.com
