Analysts Project Spot Solana and Ripple ETFs in 2025

First came a spot Bitcoin ETF, followed by a spot Ethereum ETF. What’s next? Some analysts are forecasting that Solana could be the next project eligible for an ETF. However, Standard Chartered’s Geoffrey Kendrick has indicated that a Ripple (XRP) ETF might also be on the horizon for 2025.

Kendrick stated, “For other coins (e.g., SOL, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story not a 2024 one.”

Following the U.S. Securities and Exchange Commission (SEC) approval of Spot Ethereum ETFs, momentum for other crypto ETFs has been increasing. Ripple CEO Brad Garlinghouse highlighted this possibility, referring to the SEC’s approval as a significant milestone for the industry.

When asked about the prospect of an ETF in February, Garlinghouse responded, “We would certainly welcome it, and I think it’s inevitable that there’ll be multiple ETFs around different tokens.”

A spot crypto ETF tracks the price of a specific cryptocurrency and invests portfolio funds into that crypto. These funds are traded on public exchanges but generally track a particular cryptocurrency. Like similar funds, crypto ETFs are available on regular stock exchanges, allowing investors to hold them in their standard brokerage accounts. In essence, crypto ETFs provide retail traders with direct exposure to crypto prices without the need to directly own the assets.

XRP’s Path to a Spot ETF

The ongoing lawsuit between Ripple and the SEC, in which the SEC accuses Ripple of selling unregistered securities, presents a significant challenge to a spot ETF. The outcome of this litigation will be crucial in determining not only Ripple’s future but also the feasibility of an XRP ETF.

The legal uncertainty surrounding Ripple has impacted the price of XRP, which is currently priced at $0.53, below its 2024 opening price of $0.62. A resolution to the lawsuit is expected this summer, and if favorable, XRP could experience a price increase.

Positive Sentiment in the Crypto Industry

This spot ETF sentiment comes at an optimistic time for the crypto industry, both politically and in terms of pricing. Recently, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling that the US is open to cryptocurrency.

“The SEC’s approval of a spot ETF for Ether is the latest sign that crypto is being accepted as a mature asset class. This underscores the need for Congress to establish a regulatory framework to protect consumers and provide clear rules for the industry.”

Additionally, crypto exchange Coinbase has resumed XRP trading in New York, following a suspension in 2021 due to the lawsuit, reflecting a positive sentiment towards the project.

Stay updated with the latest news on cryptocurrencies, investing, and finance at Global Crypto News.

Post Views: 8