The US SEC (Securities and Exchange Commission) has approved two types of cryptocurrency ETFS (Exchange Traded Funds) this year. The financial watchdog approved the spot Bitcoin (BTC) ETFs in January and the spot Ethereum (ETH) ETFs earlier this month. The development has opened the discussion of which crypto will receive an ETF next, Solana (SOL), Ripple’s XRP, or something else.
Also Read: SEC Approves All Spot Ethereum ETFs
While speaking to CNBC, BKCM founder Brian Kelly said that Solana (SOL) could be the next cryptocurrency to receive ETF approval. Kelly called Bitcoin, Ethereum, and Solana the big three of this cycle.
Also Read: Solana: Anthony Scaramucci Predicts SOL ETF Next
Bloomberg analyst James Seyffart agreed with Kelly. Seyffart believes an SOL ETF will have more demand than other digital assets, apart from BTC and ETH. Seyffart said the Financial Innovation and Technology for the 21st Century (FIT21) bill will speed up a SOL ETF launch. Furthermore, Seyffart believes a SOL ETF will debut after a few years of a CFTC-regulated futures market.
Solana ETF to make a debut before XRP ETF?
According to Seyffart, Ripple’s ongoing lawsuit with the SEC is a barrier for an XRP ETF this year. Nonetheless, Ripple CEO Brad Garlinghouse is confident the SEC will approve an XRP ETF. Garlinghouse highlights that XRP and BTC are the only cryptocurrencies with regulatory clarity.
Also Read: Ripple CEO Hints At Spot XRP ETF
According to Geoffrey Kendrick, head of crypto research and emerging market foreign currencies at Standard Chartered, it is only a matter of time before the SEC approves other crypto ETFs. According to Kendrick, Solana (SOL) and XRP are among the top choices that may get an ETF approval from the authorities. Kendrick also notes that the SEC probably does not consider cryptocurrencies similar to ETH, such as XRP, as securities due to their core technological similarities.