Solana
XRP and Cardano Poised for Bullish Market Earthquake as Solana ETF Wave Gains Momentum ⋆ ZyCrypto
VanEck and 21Shares’ filing for a Solana cash ETF (exchange-traded fund) could open the floodgates for more crypto ETFs in the United States, according to a report from GSR.
The market maker noted that Solana had created a solid position among the crypto big three. However, it was only a matter of time before other digital assets like Cardano and XRP joined this space.
Are XRP and Cardano ETFs Next?
THE GSR Report noted two key factors that will determine the next crypto spot ETF: the level of decentralization and potential demand.
“The level of decentralization could be a determining factor in whether a digital asset qualifies for an ETF,” the report said, adding that most public blockchains become decentralized over time.
GSR gave an example of the Cardano blockchain. The blockchain is set to become more decentralized with the upcoming upgrade known as the Voltaire erawhich will decentralize governance on the Cardano network.
Currently, Cardano’s decentralization score is negative, according to the GSR report. However, with Charles Hoskinson promising an upgrade later this month, this score is likely to increase, increasing the chances of approval of a Cardano spot ETF.
Demand is another factor affecting the approval of the next crypto spot ETF. XRP ranks fourth in the demand analysis after Ether, Solana, and NEAR.
An XRP spot ETF is even more likely, as issuers will most likely file applications for ETFs that they believe will see strong demand. XRP is one of the most popular digital assets in the cryptocurrency space, which could be of interest to issuers.
“While crypto-native issuers may file for a good number of spot digital asset ETFs, we believe larger issuers are more likely to focus on just one or two, with both sufficient decentralization and high potential demand determining which digital assets are next,” GSR said.
Changing US regulatory framework will pave the way for more ETFs
In its report, GSR also mentioned that the US regulatory framework is changing. While some believe that another spot altcoin ETF will not be listed on the US market due to the lack of a futures market, the market maker believes that the US regulatory framework is about to change.
He noted that former US President Donald Trump has emerged As a strong supporter of the cryptocurrency industry, Democrats are also softening their stance on digital assets in an effort to attract pro-crypto votes.
If the next U.S. administration chooses a liberal commissioner for the U.S. Securities and Exchange Commission (SEC), it could pave the way for the launch of several digital cash ETFs.
Eric Balchunas, Bloomberg ETF analyst agreed with that, saying a crypto-friendly SEC commissioner will bring more crypto spot ETFs to the United States.