The year 2024 will go down in history as the moment when Bitcoin and Ethereum exchange-traded funds (ETFs) finally launched, transforming the crypto landscape. Eleven Bitcoin spot ETFs were approved in January, a huge leap after years of futures-based products that started trading in 2021. Soon after, 9 ETH spot ETFs were also approved and are trading in the market. The approval of these crypto products has created a great impact in the space. It also signals the mainstream adoption of crypto products. The SEC has even approved the Options Trading for Spot Bitcoin ETFs.
However, not every crypto is getting the same treatment.
Will Solana and XRP ETFs Be Approved?
Crypto ETFs for Solana, XRP, and even Litecoin are now in limbo. VanEck and 21Shares submitted forms for Solana spot ETFs in June and July. But the SEC hasn’t moved forward with approval. In fact, it even removed related forms from the Cboe website. This shows how cautious regulators are when dealing with assets other than Bitcoin and Ethereum.
Nate Geraci, the president of The ETF Store, shared that Solana ETFs probably won’t be approved under the current administration. The SEC has made it clear that it sees most cryptocurrencies—besides Bitcoin and Ethereum—as securities, adding another layer of complexity to the process.
XRP and Litecoin Crypto ETFs on Hold
Adding to the suspense, Bitwise submitted a filing for an XRP ETF on October 2, 2024. This follows the long legal battle between Ripple and the SEC. While Bitwise updated their application on October 15, the SEC is still dragging its feet. Canary Capital, another investment firm, also joined the race, filing their own S-1 form for a Litecoin ETF the same month. But like Solana, XRP and Litecoin ETFs are still pending approval.
If approved, these ETFs could flood the market with liquidity, bringing in a wave of new investors. Lark Davis, a well-known crypto influencer, says these ETFs could help crypto gain more exposure. The ETFs wouldn’t just benefit investors; they could also strengthen market confidence, attracting more people to the crypto space.
What’s Next?
The future of Solana, XRP, and Litecoin ETFs is uncertain. But if the SEC approves them, it could push the crypto market to new heights. Until then, all eyes are on Bitcoin and Ethereum, which are already changing the game with their newly launched spot ETFs. Will 2024 be the year crypto truly goes mainstream?
