Following the successful introduction of cryptocurrency-based exchange-traded funds (ETFs) in the US, the possibility of new digital asset ETFs is gaining momentum. Investors are particularly excited about the potential debut of XRP and Solana ETFs, which could significantly impact the crypto landscape.
XRP ETF Moves Closer to Reality
During the Ripple Swell 2024 conference, Tim McCourt, Senior Managing Director at CME Group, revealed that significant progress has been made toward an XRP ETF. He explained that CME now offers an XRP reference rate and real-time index, marking the first major step in creating a broader ecosystem for this digital asset. McCourt noted, “We have upwards of 50 real-time prices and reference rates, which is key for product providers like Bitwise to point to a fully regulated benchmark.”
Canary XRP ETF filing with SEC. Source: Eric Balchunas
This announcement comes shortly after the US Securities and Exchange Commission (SEC) received its second application for an XRP ETF from Canary Capital, following an earlier submission from Bitwise Asset Management.
ETFs Boosting Crypto Market Growth
The launch of spot Bitcoin and Ether ETFs marked a turning point for the cryptocurrency industry. According to McCourt, these ETFs have accelerated the growth of the crypto ecosystem, stating that many of the largest open interest and volume days in futures have followed their introduction.
Panel discussion. Ripple Swell
“ETFs are really accelerating the industry,” McCourt said, highlighting their role in legitimizing the sector. For Bitcoin, ETFs contributed to about 75% of new investments by February 2023, helping drive its price past the $50,000 mark.
Solana ETF Speculation Grows
Beyond XRP, investors are also excited about the possibility of a spot in Solana ETF. Brazil recently approved the first Solana ETF on August 7, setting a precedent for other regions. Alejo Pinto, founder of Solana layer-2 network Lumio, believes a US Solana ETF could have a significant price impact if approved, as it is currently considered a low-probability event.
Experts predict that a Solana ETF could materialise by the end of 2024, potentially catalysing further growth in the crypto market.
