Despite rising interest in Solana and XRP ETFs, experts suggest regulatory obstacles may push approval beyond 2025, leaving investors uncertain about the future of these crypto investment vehicles.
Solana and XRP ETFs Remain Uncertain
Even though some are predicting a high likelihood of approval next year, an ETF specialist says there are still several obstacles. The US SEC's hesitation is the main cause of the delayed approval of investment vehicles.
In light of recent approvals for Solana and XRP, president of The ETF Store and co-founder of The ETF Institute Nate Geraci has stated that it is highly unlikely that further spot crypto ETFs will be approved. Putting politics aside, it will be challenging to foresee a spot SOL ETF or spot XRP ETF for at least a year or two due to the present market situation and regulatory posture.
On September 14, Geraci stated in an X post:
Election Results Could Reshape Crypto Regulations
Under the current government, he thinks the chances are slim. It might depend on how the US elections turn out in November. When governments change, crypto regulatory regulations could be rethought.
After the victories of Republican presidential candidate Donald Trump and Democratic candidate John Deaton for the Massachusetts Senate, the market anticipates a dramatic change.
Gains for the XRP exchange-traded fund may follow the victory of pro-XRP attorney Deaton, Coingape shares. However, the cryptocurrency market is in a state of uncertainty about whether Democratic presidential candidate Kamala Harris wins.
Speculation Grows Around Solana ETF
Spot Solana exchange-traded funds were the subject of more speculation with the US SEC's approval of proof-of-stake Ethereum for ETFs.
In addition, the filings by VanEck and 21Shares for the spot SOL ETF boosted market sentiment and the price of SOL. Nevertheless, the 19b-4 filings for the SOL ETF, which were previously available on the Cboe website, are no longer there. According to analysts, the US SEC is hesitant to approve them.
VanEck Eyes US Solana ETF After Brazil’s Success
The licensing of two spot Solana ETFs in Brazil has led VanEck's head of research, Matthew Sigel, to suggest that a regulatory "soft fork" may be necessary in the US before Solana ETFs may be permitted.
With Ripple's partial victory in the US SEC v. Ripple Labs lawsuit, the chances of an XRP ETF were increased. There has been no appeal in the XRP litigation, according to recent developments by the US SEC and Ripple management.
XRP ETFs Inch Closer as Financial Systems Integrate XRP
This transparency, combined with initiatives like CME's XRP Index and Grayscale XRP Trust, highlights the incorporation of XRP into established financial systems, increasing the likelihood of this happening.
Monica Long, president of Ripple, has spoken out about the possibility of an XRP ETF launch. Also, CLO Stuart Alderoty and CEO Brad Garlinghouse of Ripple have maintained their optimism over the odds.