News View Non-AMP

XRP Lacks Key Elements Like ‘Customer Demand’ for ETF Approval; Solana Meets All Criteria

Published by
Anjali Belgaumkar

Matthew Sigel, Head of Digital Assets Research at VanEck appeared on Thinking Crypto’s podcast and opened up about Ethereum, Solana and XRP ETFs. The SEC’s approval of eight Ethereum ETFs, including those from BlackRock and Fidelity, has fueled speculation about the potential for an XRP spot ETF. After the approval of a Bitcoin ETF, attention shifts to other leading cryptocurrencies like XRP and Solana. 

Consideration of XRP ETFs

When Sigel was asked if they are considering XRP ETFs, he said that bringing an ETF to market requires several stakeholders to be on board. The regulator must approve the underlying asset, the issuer must have confidence in the asset’s value, and there must be support from counterparties like exchanges, market makers, and custodians. Additionally, there needs to be customer demand. For Solana, they have all these elements in place. However, for XRP, they are lacking internal conviction and customer demand, making an XRP ETF less likely at this time.

Solana’s Readiness for an ETF

He stated that when they reviewed their Ethereum filing and examined the language around decentralization and blockchain characteristics, they also refreshed their deep dive on Solana. They looked at who controls the chain and who can stop it. They concluded that the ETH and SOL assets are fundamentally the same at this point, with no single entity controlling more than 20% of Solana’s outstanding tokens, nor can anyone unilaterally halt the chain.

Ethereum and Solana: A Comparative Analysis

As a result, Solana is considered a utility commodity that provides access to the second-largest open-source app store. The analyst is optimistic that, over time, regulators will approve these products. He acknowledged the focus on the existence of a regulated futures market of significant size to ensure market transparency and prevent manipulation. 

However, he believes this focus is misplaced, pointing out that other ETFs in markets like power, electricity, shipping, and uranium do not rely heavily on the futures market for price formation.

Read Also: Best Crypto To Buy Right Now As Market Crash Bottoms Out 

Anjali Belgaumkar

Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

Recent Posts

Forget PEPE – Influencer Pepe (INPEPE) is the Future of Meme Coins with Real Utility!

PEPE hopped its way to a $3.8 billion market cap, but its reign as a…

April 3, 2025

Ripple (XRP) Eyes $10 as Ruvi AI (RUVI) Captures Investor Attention with Huge Growth Potential During Presale Phase 1

Ripple’s (XRP) recent rally from $2.00 to $2.20 has sparked excitement among cryptocurrency enthusiasts. This…

April 3, 2025

How High Can Influencer Pepe Go? Expert Predictions for 2025-2030!

The crypto circus has a new ringmaster: Influencer Pepe (INPEPE). This Pepe-the-Frog-inspired token is making…

April 3, 2025

Crypto Bloodbath: Solana, XRP, and Dogecoin Take Double-Digit Hits, Is Your Altcoin Safe?

The global cryptocurrency market took a major hit today, with the total market capitalization falling…

April 3, 2025

Just In: Michael Saylor Says ‘There Are No Tariffs on Bitcoin’

The cryptocurrency market took a nosedive Thursday, with Bitcoin and its digital cousins feeling the…

April 3, 2025

US Markets Face One of the Biggest Crashes- Here’s How the Crypto Markets & Bitcoin Price May React

The US markets are facing one of the biggest crashes, with over 4% loss in…

April 3, 2025