With the prospect of an Ethereum spot ETF looming, industry experts are setting their sights on the next contender. Enter Solana (SOL) and XRP (XRP), two prominent crypto assets vying for the coveted ETF title.
Brian Kelly, founder of BKCM, believes Solana has a strong case due to its market competition with Ethereum. Bloomberg analyst James Seyffart echoes this sentiment, highlighting Solana’s fit within current market conditions. However, a Solana ETF might not be immediate.
2026 Earliest, Pro-Crypto Bill Might Expedite
Seyffart suggests a wait of at least two years, citing the need for a CFTC-regulated futures market for Solana. However, the recently passed pro-crypto bill could potentially accelerate this timeline. Additionally, Seyffart believes a Solana ETF would see significant investor demand, potentially surpassing other altcoins (excluding Bitcoin and Ethereum).
A significant hurdle for Solana is the SEC’s classification of SOL as a security, a point contested by exchanges like Coinbase and Kraken. Seyffart warns that the SEC’s stance “could very easily make this [ETF] a very rocky road.”
XRP: Regulatory Clarity Hampered by Ongoing Lawsuit
While XRP enjoys a seemingly clearer regulatory status compared to Solana, Seyffart doesn’t foresee it surpassing SOL in the ETF race. The ongoing lawsuit between Ripple and the SEC remains a critical obstacle. Additionally, establishing a futures market and a potential change in SEC leadership are deemed necessary for XRP’s ETF prospects.
Both Solana and XRP face hurdles before securing their own ETFs. While Solana might seem like the frontrunner due to market position, regulatory hurdles pose a challenge. XRP, though possessing clearer regulations, is entangled in a legal battle that could significantly delay its ETF dreams. Investors eyeing these altcoin ETFs should prepare for a wait, with 2026 being the earliest potential timeframe and regulatory developments influencing the final timeline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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