Following the approval of spot Bitcoin and Ethereum ETFs, analysts are projecting that Solana (SOL) and Ripple (XRP) could be next in line for ETF status, potentially as early as 2025. Standard Chartered’s Geoffrey Kendrick suggested that the market will likely look forward to the eventual ETF status for other cryptocurrencies like Solana and Ripple, though this development is anticipated for 2025 rather than 2024.
The U.S. Securities and Exchange Commission’s (SEC) recent approval of spot Ethereum ETFs has generated momentum for additional crypto ETFs. Ripple CEO Brad Garlinghouse celebrated this approval, describing it as a “momentous” occasion for the industry. In a February statement, Garlinghouse expressed optimism about the inevitability of multiple ETFs around different tokens.
A spot crypto ETF tracks the price of a specific cryptocurrency and invests portfolio funds directly into that asset. These funds, traded on public exchanges, allow retail traders to gain exposure to cryptocurrency prices without directly owning the underlying assets. Crypto ETFs can be held in standard brokerage accounts, making them accessible to a broader range of investors.
XRP’s Path to a Spot ETF
However, the path to a spot ETF for XRP is complicated by the ongoing lawsuit between Ripple and the SEC. The SEC has accused Ripple of selling unregistered securities, creating significant legal uncertainty that has impacted XRP’s price, currently at $0.53, below its 2024 opening price of $0.62.
The resolution of this lawsuit, expected this summer, will be pivotal. A favorable outcome could clear the way for an XRP ETF and potentially lead to a price surge for the cryptocurrency.
As the crypto market continues to evolve, the approval of ETFs for other prominent cryptocurrencies like Solana and Ripple could significantly impact investor access and market dynamics, paving the way for broader adoption and increased legitimacy of digital assets.
