Solana vs XRP: Which Spot ETF is Launching Next? BlackRock Advises Caution

With strong community backing, there’s a lively debate about whether Solana or XRP will be the first to get ETF approval. While XRP is entangled in legal issues with the SEC, Solana ETFs seem to have a clearer path to approval. But not everyone is convinced.

Here’s a realistic look at the ETF buzz so you can decide for yourself.

Blackrock‘s ‘Practical’ View

On the first day of Bitcoin Conference 2024,, Robert Mitchnick, BlackRock’s Head of Digital Assets, was skeptical about the approval of Solana (SOL), Ripple (XRP), and other altcoins. He pointed out their lack of maturity and liquidity, along with regulatory concerns and the SEC’s reluctance to approve more crypto ETFs.

Mitchnick explained that while Bitcoin and Ethereum lead the market with their large market caps, other altcoins don’t meet the necessary standards for ETF approval.

Why Did Spot Ether ETFs Fall Flat?

Despite the approval of spot Ether ETFs, their performance has been poor, with products like grayscale Investment grayscale Investment - Investment platform ETHE experiencing consecutive outflows. Mitchnick also mentioned that the SEC was uncomfortable with spot Ether ETFs offering staking facilities, reflecting broader regulatory uncertainties.

Contrasting Views

Nate Geraci, President of The ETF Store, disagrees with Mitchnick’s pessimism. He pointed out that Europe already has successful ETPs for altcoins like Solana, XRP, and Cardano. Geraci believes similar products could be introduced in the US with the right regulatory changes and is optimistic about future developments in the US crypto ETF market.

Matthew Sigel, head of digital asset research at VanEck, provided another perspective. He said that creating an ETF requires strong support from regulators, issuers, and market players such as exchanges and custodians. Right now, XRP lacks the demand and internal backing needed for approval. However, Solana’s decentralization and security meet the ETF criteria, giving it a better chance. Sigel is hopeful that regulators will approve these products over time.

BlackRock’s Q2 Performance

blackrock blackrock - Fintech SolutionAdvisoryInvestment platform reported strong Q2 earnings, with assets under management (AUM) reaching $10.6 trillion. Despite this, Mitchnick stressed that BlackRock does not see altcoin ETFs beyond Bitcoin and Ethereum becoming a reality soon, given the current market conditions and regulatory challenges.

What Next?

The SEC’s recent approval of Ethereum ETFs has opened new possibilities for cryptocurrencies. While XRP faces several challenges before it can get ETF approval, Solana seems to meet all the necessary requirements. GSR even suggested last month that Solana could be next for an ETF if more spot digital asset ETFs are allowed in the US.

As investors wait for regulatory decisions, there’s hope that Solana and XRP will soon benefit from ETF approval. With major firms like VanEck and 21Shares showing interest in SOL and XRP, many are eager to see if a year-end approval is on the horizon.

Also Check Out: Flag of Ethereum Raised Over Wall Street: ETH Price To Surge $14K

Who do you think will win the race for ETF approval – Solana or XRP? Let us know.