Following the approval of spot Ethereum exchange-traded funds (ETFs), analysts are now projecting the introduction of spot Solana (SOL) and Ripple (XRP) ETFs in the coming years. Standard Chartered’s Geoffrey Kendrick has specifically forecasted that a Ripple ETF could be on the horizon by 2025.
The progression of cryptocurrency ETFs began with the approval of a spot Bitcoin ETF, followed by the recent sanctioning of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC). This development has fueled speculation about the next digital assets to receive ETF status.
Geoffrey Kendrick from Standard Chartered has suggested that while Solana is a strong candidate for the next ETF, Ripple’s XRP could also secure approval by 2025. “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,” Kendrick stated.
The SEC’s approval of spot Ethereum ETFs has significantly increased momentum for additional crypto ETFs. Ripple CEO Brad Garlinghouse hinted at this possibility, celebrating the SEC’s decision as a “momentous” occasion for the industry. When asked about the potential for an XRP ETF earlier this year, 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 allocates portfolio funds into that asset. These ETFs are traded on public exchanges and allow retail investors to gain direct exposure to cryptocurrency prices without owning the underlying assets.
XRP’s Path to a Spot ETF
A major hurdle for the approval of an XRP ETF is the ongoing lawsuit between Ripple and the SEC. The SEC has accused Ripple of selling unregistered securities, creating significant legal uncertainty around XRP. The outcome of this lawsuit is crucial for Ripple’s future and the potential launch of an XRP ETF.
The legal battle has impacted XRP’s price, currently at $0.53, below its 2024 opening price of $0.62. However, a resolution is expected this summer, and a favorable outcome could result in a substantial price increase for XRP.
Positive Sentiment and Industry Support
The sentiment towards cryptocurrency ETFs comes at a favorable time for the industry. The U.S. House of Representatives recently passed the Financial Innovation and Technology for the 21st Century Act (FIT21), signaling a supportive stance towards the crypto sector. Additionally, Coinbase has resumed XRP trading in New York, after a suspension in 2021 due to the lawsuit, further echoing positive sentiment towards Ripple.
As the industry awaits the resolution of Ripple’s legal issues, the potential approval of XRP and other altcoin ETFs marks a significant step forward in the broader acceptance and integration of cryptocurrency into mainstream financial markets.
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