The recent green light for Ethereum-based ETFs by the U.S. SEC has ignited a heated debate within the crypto community: which digital asset will be next in line for a spot ETF? While XRP and Solana (SOL) are the frontrunners, opinions are far from unanimous.
XRP Army Rallies, But Traditional Players Favor Bitcoin and Ethereum
A recent survey reflects this divide. A whopping 63% of participants believe XRP is the most deserving candidate, citing its clear regulatory status in the U.S. The XRP Army, a passionate group of XRP supporters, strongly advocates for this position. However, leading asset managers like BlackRock and Fidelity have focused their ETF efforts solely on Bitcoin and Ethereum, leaving XRP out of the picture.
- Solana: A Strong Contender with Hurdles to Clear
Analysts see promise in Solana following the Ethereum ETF approvals. Bloomberg’s James Seyffart highlights Solana’s institutional appeal and its competitive edge against Ethereum. However, Seyffart throws cold water on a near-term Solana ETF, citing the lack of a CFTC-regulated futures market and potential security concerns held by the SEC. Additionally, Ark Invest’s Cathie Wood believes a Solana ETF is inevitable, but emphasizes a focus on more established players initially.
Also Read: US Stalls on Ethereum ETF Staking, Will Hong Kong Steal the Show with Passive Income Potential?
- XRP’s Legal Woes Cast a Long Shadow
The outlook for an XRP ETF remains bleak. The ongoing SEC lawsuit against Ripple, coupled with the absence of a CFTC futures market, poses significant roadblocks. Seyffart believes resolving these issues will be a time-consuming process, delaying a potential XRP ETF. Despite this, Ripple CEO Brad Garlinghouse remains optimistic about the future of XRP, Cardano, and Solana ETFs, albeit acknowledging a potentially lengthy approval process.
Related: XRP, Solana, Cardano ETFs: Ripple CEO Foresees “Inevitable” Launch After SEC Approves Ether ETFs
A Wildcard Entry: Litecoin and Dogecoin?
Interestingly, prominent commentator Adam Cochran throws a curveball, advocating for Litecoin (LTC) and meme-coin Dogecoin (DOGE) to be prioritized. He argues that their strong retail demand makes them compelling candidates. Seyffart partially agrees, suggesting they might be viable options in the future.
The Verdict: A Race with Many Runners
The race for the next spot ETF is far from over. While XRP enjoys strong community support and Solana presents an attractive alternative, regulatory hurdles pose major challenges. Meanwhile, established players like Bitcoin and Ethereum are already at the starting gate. As the crypto market evolves, other contenders like LTC and DOGE may even enter the fray. Ultimately, the SEC holds the key, and their decision will have a significant impact on the future landscape of cryptocurrency ETFs.
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. chainaffairs.com is not responsible for any financial losses.
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