Is the Future Bright for XRP and Solana ETFs? Expert Shares Insights
The cryptocurrency industry is eager for the introduction of spot Solana and XRP ETFs following the recent approval of spot Bitcoin and Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC). Anticipation from Solana and XRP communities, along with developments in the cryptocurrency market, has generated significant demand for exchange-traded funds among institutional investors. However, despite potential opportunities, an expert in ETFs suggests that there are numerous challenges to overcome.
Nate Geraci Stance
Nate Geraci, president of The ETF Store and co-founder of The ETF Institute, expressed skepticism about the approval of spot Solana or XRP ETFs in the near future. Geraci cited current market conditions and regulatory constraints as significant barriers, stating that it is unlikely to see spot SOL or spot XRP ETF approvals within the next year or two.
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Geraci emphasized that the current political landscape and regulatory stance suggest low probability under the current administration. He suggested that the outcome of the U.S. elections in November could potentially influence the regulatory environment for crypto, with potential shifts depending on the election results.
There is speculation in the market regarding a potential shift in regulatory policies based on the outcome of the U.S. elections. Some observers believe that a victory for Republican presidential candidate Donald Trump and Massachusetts Senate candidate John Deaton would likely be favorable for a potential XRP exchange-traded fund. Meanwhile, the victory of Democrat Kamala Harris in the presidential elections could create uncertainty for the crypto industry.
Instances Fuelling the ETFs for Solana
The likelihood of a spot Solana exchange-traded fund gained traction following the approval of proof-of-stake Ethereum for ETFs by the U.S. SEC. VanEck and 21Shares‘ filings for a spot SOL ETF also contributed to optimistic investor sentiment. However, these filings are currently unavailable on the Cboe website, leading experts to believe that the U.S. SEC is hesitant to approve them.
XRP ETF Odds
In the case of XRP, developments such as Ripple’s involvement in the US SEC v. Ripple Labs lawsuit have influenced the odds of an XRP ETF. Recent announcements, including Grayscale XRP Trust and XRP Index by CME, suggest a growing integration of XRP into traditional financial systems, raising the prospects of an XRP exchange-traded fund.
Despite the heightened anticipation, delays in ETF approvals by the U.S. SEC have impacted market sentiment, leading to declines in the prices of SOL and XRP. Solana is currently trading at $138, down over 2% in a month, while XRP is priced at $0.576, experiencing nearly a 10% increase this week following recent developments, including Grayscale’s announcement of XRP Trust.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
