Expert Predictions: Which ETF Could Be Next?
With the recent approval of Spot Ethereum ETFs, discussions have been sparked about which cryptocurrency token might be the next to have its own ETF. Solana (SOL) and XRP ETFs have taken the spotlight, with experts weighing in on which one is likely to launch first. Let’s delve into expert predictions and insights to understand the potential outcomes for these ETFs.
Potential for a Solana ETF
According to Brian Kelly, the founder of digital assets investment firm BKCM, Solana could potentially be the next cryptocurrency token to have its own ETF. Kelly highlighted that Bitcoin, Ethereum, and Solana are the top contenders in the current cycle, indicating a strong possibility for a SOL ETF in the near future. As the two leading cryptocurrencies already have dedicated funds, Solana seems to be the logical choice for the next ETF.
- Brian Kelly believes Solana is the next frontrunner for a crypto ETF.
Furthermore, Bloomberg analyst James Seyffart echoed Kelly’s sentiment, expressing his belief that a SOL ETF would attract significant demand compared to other digital assets apart from Bitcoin and Ethereum. While Seyffart projected the launch of a SOL ETF following the establishment of a CFTC-regulated futures market, he also emphasized the significance of legislative initiatives such as the FIT21 bill in expediting the launch process. However, the classification of Solana as a security in legal proceedings against Coinbase and Kraken could present obstacles to the approval of a SOL ETF.
- James Seyffart predicts high demand for a Solana ETF.
Possibility of an XRP ETF
Market experts have also explored the likelihood of an XRP ETF entering the market. Townsend Lansing, the head of product at CoinShares, emphasized that the SEC’s recognition of XRP as a non-security is crucial for the launch of an XRP ETF. While some experts, like Scott Johnsson from Van Buren Capital, have expressed skepticism regarding the approval of an XRP ETF, there is ongoing speculation about its feasibility.
- Townsend Lansing highlights the importance of XRP being classified as a non-security for an ETF launch.
Similar to the discussions surrounding a SOL ETF, James Seyffart has also weighed in on the potential of an XRP ETF. He suggested that the trading of XRP futures on regulated exchanges like the Chicago Mercantile Exchange (CME) is a necessary precursor for the launch of an XRP ETF. However, uncertainties related to the SEC’s legal battle with Ripple pose challenges for the approval of an XRP ETF in the current year.
- James Seyffart emphasizes the requirement for XRP futures trading on regulated exchanges for an ETF launch.
Outlook for Future ETF Approvals
Given the varying perspectives on the launch of Solana and XRP ETFs, it remains to be seen which cryptocurrency token will receive regulatory approval first. Factors such as legislative developments, market structure, and regulatory clarity will play pivotal roles in determining the timeline for these ETFs. While the road ahead may pose challenges, the crypto community eagerly anticipates the expansion of ETF offerings to include a diverse range of digital assets beyond Bitcoin and Ethereum.
Hot Take: Anticipating the Next ETF
Recent developments with the Spot Ethereum ETFs have sparked discussions about the potential launch of ETFs for other cryptocurrency tokens, particularly Solana and XRP. With experts providing insights on the likelihood of these ETFs and the regulatory hurdles they may face, the crypto community awaits further clarity on the future of ETF approvals. Stay tuned for updates on which cryptocurrency token could be next in line for its own dedicated ETF.
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