Industry experts are foreseeing the emergence of Solana and Ripple ETFs by the year 2025, following the recent approval of Ethereum ETFs. The progression from a spot Bitcoin ETF to a spot Ethereum ETF has paved the way for what could be next in the world of cryptocurrency.
While some analysts have predicted that Solana could be the next project to receive an ETF, Geoffrey Kendrick from Standard Chartered has suggested that a Ripple (XRP) ETF could also make its debut in 2025. Kendrick stated, “For other coins such as SOL and XRP, the markets are anticipating their eventual ETF approval, with 2025 being a more likely scenario than 2024.”
The approval of Spot Ethereum ETFs by the U.S. Securities and Exchange Commission has ignited momentum for the potential introduction of other crypto ETFs. Ripple CEO Brad Garlinghouse has hinted at the possibility of this development, expressing his excitement through a social media post celebrating the SEC’s approval as a “momentous” event for the industry.
In a recent interview, Garlinghouse welcomed the idea of an ETF, stating, “We would certainly welcome it, and I think it’s inevitable that there will be multiple ETFs for different tokens.”
A spot crypto ETF essentially mirrors the price movements of a specific cryptocurrency and invests portfolio funds into that particular asset. These funds are then traded on public exchanges, providing investors with exposure to crypto prices without the need to directly own the assets.
The path to a spot XRP ETF faces challenges due to the ongoing legal battle between Ripple and the SEC, which alleges that Ripple sold unregistered securities. The resolution of this lawsuit will not only impact Ripple’s future but also determine the feasibility of an XRP ETF. The uncertainty surrounding Ripple has hindered XRP’s price performance, currently trading at $0.53, below its opening price of $0.62 in 2024.
The anticipated resolution of the lawsuit in the upcoming months could potentially result in a price surge for XRP, should the outcome be favorable. The sentiment towards spot ETFs comes at a favorable time for the crypto industry, with recent political developments such as the passing of the Financial Innovation and Technology for the 21st Century Act by the U.S. House of Representatives signaling a welcoming stance towards cryptocurrencies.
Furthermore, the decision by crypto exchange Coinbase to resume XRP trading in New York, following a suspension in 2021 due to the lawsuit, reflects a positive outlook towards the project’s future.