Ripple CEO Brad Garlinghouse believes that XRP, SOL and ADA could be the next cryptocurrencies on which exchange-traded funds (ETFs) will appear.
During a speech at Consensus 2024, Garlinghouse noted that the US Securities and Exchange Commission (SEC) has made significant progress on ETF issues after approving funds for Bitcoin (BTC) and Ethereum (ETH).
Will there be ETFs on XRP, SOL and ADA?
Garlinghouse believes that the approval of spot ETFs based on Bitcoin and Ethereum has set a precedent that may well pave the way for other cryptocurrencies. In his opinion, the emergence of funds based on Ripple (XRP), Solana (SOL) and Cardano (ADA) will increase the acceptance of digital assets in the financial sector.
In February, Ripple's CEO argued that the approval of spot Bitcoin ETFs marks the beginning of broader acceptance of cryptocurrency exchange-traded funds. He believes that such financial instruments will help investors diversify their investment portfolios and reduce risks.
Other industry experts share Garlinghouse's enthusiasm. But they still disagree about which cryptocurrencies can be used to create ETFs. The head of investment firm BKCM recently suggested that the approval of an Ethereum ETF would provide a clearer regulatory framework. This, in turn, will potentially lead to more digital asset-based exchange-traded funds, including Solana.
With SOL, unlike XRP, everything is clear. The creation of an ETF based on Ripple could be greatly complicated by the project's ongoing legal battle with the SEC. These concerns emphasized CEO of the investment company Asymmetric Joe McCann:
McCann also pointed to significant interest in Solana from the traditional financial sector (TradFi). This is due to the potential and favorable pricing.
Earlier, Daniel Yang, co-founder of the Matrixport analytical platform, expressed optimism regarding the launch of ETFs based on Solana. According to him, SOL could benefit from the expected success of ETH exchange-traded funds. Just like what happened after the approval of spot Bitcoin ETFs. In the week after the launch of the tool, the ETH/BTC pair grew by 12%.
According to CoinGecko, at the time of writing, Ethereum is trading at $3,743. Over the past 24 hours, the price of the asset has increased by a slight 0.5%. However, the cumulative increase over the past month was 30.9%.
Source: Cryptocurrency
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