Potential Launch of an XRP ETF in Light of Solana ETF Release
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Emergence of XRP ETF Following Solana ETF Introduction
The launch of the REX-Osprey Solana ETF on July 2 marked a significant milestone, positioning SOL as the third cryptocurrency to secure a spot ETF in the United States, following Bitcoin and Ethereum. Prominent Bloomberg analysts, Eric Balchunas and James Seyffart, have now turned their attention to XRP, speculating that it might be the next cryptocurrency to receive ETF approval.
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Insights on XRP ETF Prospects
James Seyffart of Bloomberg recently suggested via X (formerly known as Twitter) that an XRP ETF could be on the horizon, following the debut of the Solana ETF. Together with Eric Balchunas, Seyffart predicts a 95% likelihood of XRP ETF approval within the current year. Their accurate prediction of the SOL ETF’s approval bolsters their confidence in an imminent XRP fund.
The REX-Osprey initiative introduced the first Solana staking ETF on July 2, functioning as a spot SOL ETF that also offers staking rewards to investors. The Securities and Exchange Commission (SEC) has also approved the Grayscale Digital Large Cap Fund, which had similar approval odds. This progression places the XRP ETF in a favorable position for forthcoming approval.
Expert Opinions and Market Predictions
Following Grayscale’s successful conversion of its fund into an ETF, market expert Nate Geraci speculated that an XRP spot ETF could soon receive SEC approval. He foresees potential approvals for other altcoin ETFs, such as Cardano and Litecoin. However, according to Seyffart and Balchunas, a Litecoin ETF might precede an XRP ETF. The approval odds for a Litecoin ETF are also at 95%, with the SEC’s final decision deadline set for October 2, slightly earlier than XRP’s deadline on October 17.
Traders Eye XRP ETF as Next Approval
Data from Polymarket indicates that traders are optimistic about an XRP ETF being approved before any Litecoin or other altcoin ETFs. According to the prediction market, there’s an 87% probability that the XRP fund will receive approval by December 31, while an LTC ETF has an 86% chance of approval within the same timeframe.
Approval prospects for other altcoin ETFs are lower for the year-end. Analysts Seyffart and Balchunas estimate a 90% chance of approval for ETFs related to Cardano, Dogecoin, Hedera, Avalanche, and Polkadot. Polymarket traders suggest an 83% and 76% likelihood for ADA and DOGE ETFs, respectively.
Ripple’s strategic move to withdraw the cross-appeal against the SEC and the potential conclusion of the XRP lawsuit further fuel experts’ confidence, such as Geraci’s, in the forthcoming launch of an XRP ETF.
Currently, XRP is trading at approximately $2.26, reflecting a 3% increase in the last 24 hours, as per CoinMarketCap data.
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