
The approval of Bitcoin and Ethereum spot ETFs in 2024 marked a significant milestone in the crypto market.
Solana, XRP, and Litecoin ETFs face regulatory challenges as the SEC continues to scrutinize these assets as securities.
The approval of these ETFs could boost market liquidity, attract new investors, and strengthen market confidence.
The year 2024 is shaping up to be a milestone for the crypto world, as Bitcoin and Ethereum exchange-traded funds (ETFs) finally hit the market, changing the landscape forever.
In January, eleven Bitcoin spot ETFs were approved—a significant leap forward after years of futures-based products trading since 2021. Shortly after, nine Ethereum spot ETFs also got the go-ahead and are now trading. These approvals have made a big impact, signaling that crypto is moving closer to mainstream acceptance. The SEC even took an extra step by approving options trading for spot Bitcoin ETFs, further establishing the fact that crypto is here to stay!
But are we seeing some bias?
Will Solana and XRP ETFs Be Approved?
While Bitcoin and Ethereum ETFs have found success, other cryptocurrencies haven’t been as fortunate. Spot ETFs for Solana, XRP, and Litecoin are facing delays. Applications for Solana spot ETFs were filed by VanEck and 21Shares in June and July, but the SEC has not moved forward. In fact, it even removed related documents from the Cboe website, indicating a cautious approach to assets beyond Bitcoin and Ethereum.
Nate Geraci, President of The ETF Store, noted that Solana ETFs are unlikely to gain approval under the current administration. The SEC has made it clear that it sees most cryptocurrencies—apart from Bitcoin and Ethereum—as securities, complicating the approval process for these assets.
Bitwise Takes the Lead – New Hope?!
The suspense grew in October when Bitwise filed for an XRP spot ETF on October 2, following Ripple’s ongoing legal battle with the SEC. Even though Bitwise updated its application on October 15, the SEC has not taken further action. Meanwhile, Canary Capital also entered the scene by filing an S-1 form for a Litecoin ETF the same month. However, just like with Solana and XRP, approval for these ETFs is still pending.
If spot ETFs for Solana, XRP, and Litecoin receive approval, it could bring a surge of liquidity into the market and attract new investors. Crypto influencer Lark Davis believes that these ETFs could provide the exposure needed to boost cryptocurrencies to the next level.
The introduction of these ETFs would not just benefit individual investors; it could also strengthen market confidence and drive more interest in the crypto space.
What Else Will 2024 Bring?
As the fate of Solana, XRP, and Litecoin ETFs remains uncertain, the crypto community’s attention is firmly on Bitcoin and Ethereum, which are already making waves with their spot ETF launches. This year could be remembered as the time when crypto finally gained mainstream acceptance—or as a period where regulatory hurdles held back progress.
The coming months will be key in deciding whether more crypto ETFs will make it to the market or if they will remain limited to the industry’s top players.
What other cryptocurrencies do you think should be considered for ETF approval?