The crypto market is abuzz with anticipation as analysts predict the launch of spot Solana and Ripple ETFs by 2025. This follows the recent green light for spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC). With these developments, the trajectory for other cryptocurrencies appears promising.
Geoffrey Kendrick of Standard Chartered has spotlighted potential ETFs for Solana and Ripple (XRP) in the near future. According to Kendrick, these are likely to materialize in 2025 rather than 2024. The momentum gained from the Ethereum ETF approval seems to be paving the way for more cryptocurrencies to enter the ETF sphere.
Ripple CEO Brad Garlinghouse expressed enthusiasm over the SEC’s decision, suggesting that it marks a significant milestone for the crypto industry. Garlinghouse believes the introduction of multiple ETFs focused on various tokens is inevitable.
.@SECGov’s approval of a spot ETF for Ether is the latest sign crypto is being accepted as a mature asset class and underscores the need for Congress to pass a regulatory framework to protect consumers and provide clear rules of the road for the industry.
— Senator Cynthia Lummis (@SenLummis) May 24, 2024
Understanding Spot Crypto ETFs
A spot crypto ETF mirrors the price of its respective cryptocurrency by investing in it directly. Unlike derivative-based funds, these ETFs provide retail traders the chance to engage with cryptocurrency markets through standard brokerage accounts. This setup eliminates the need for direct ownership of the assets, easing the entry for average investors.
The journey towards a Ripple ETF is fraught with challenges, notably the ongoing legal battle with the SEC. The commission has accused Ripple of issuing unregistered securities, a claim that has constrained XRP’s market performance. Presently, XRP’s price lags at $0.53, down from its 2024 start of $0.62.
The resolution of this lawsuit, expected in the coming summer, is crucial. A favorable outcome could potentially boost XRP’s price and solidify its position in the ETF market.
The broader crypto environment is receiving positive signals from various quarters, including the U.S. government. The recent passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the U.S. House of Representatives is a notable example. This legislation is seen as a welcoming gesture to the crypto industry, encouraging innovation and participation in the financial technology sector.