SOL and XRP Are Primed For A Wave Of ETF Approvals

In 2025, the ETF race is entering its next phase, the question of ‘if’ has been answered long ago, after BTC and ETH successfully blew open the doors. Now, we’re comfortably in the ‘when?’ stage, with XRP and SOL emerging as the two strongest contenders for the next wave of spot ETF approvals. After BTC and ETH set the tone last year, as they often do, analysts are now turning their attention to these two altcoins, which boast the highest number of active ETF applications and some of the most compelling fundamentals in the crypto market.

Now just in case you didn’t know what an ETF was, they’re like a pick and mix of crypto coins. Instead of buying a single coin, you get to hold a whole bunch of them. And they trade on a regular stock market, not on a crypto exchange. So if you’re not that crypto savvy, don’t really know how the buying process works or just feel more comfortable buying on the stock market - ETFs are for you! Also, if something gets ETF approval, it means due diligence has been done and this is a project worthy of being in the ETF. You aren’t going to see a $PEPE ETF, if you know what I mean. 

Anyway, let’s continue! 

XRP's journey to ETF approval has been anything but straightforward. Now, after literally years and years of legal struggles, things suggest the tide may finally be turning in their favor. According to analysts at Kaiko, XRP currently leads all altcoins with 10 active ETF filings, more than double Solana's five applications, and its market structure presents several unique advantages. Interestingly, XRP has the highest 1% market depth among major altcoins, meaning there are substantial buy and sell orders clustered close to the current price. Liquidity like this is crucial for ETFs, because it ensures stability and minimizes slippage when large trades are executed. 

"A highly liquid spot market is important for creating efficient structured products," Kaiko analysts noted. Historically, liquidity is a prioritized factor in the SEC approval process too. So the more liquidity, the higher the approval chances are.

XRP's liquidity surge toward the end of 2024 wasn't a fluke either. Traders began piling into the token as optimism grew that a pro-crypto Trump administration could finally resolve the SEC's long-running lawsuit against Ripple. Those hopes were partially realized in March when Ripple CEO Brad Garlinghouse declared the legal battle "over," but some regulatory fine print remains unresolved.

Perhaps the most surprising development was the recent launch of Teucrium's XXRP, a 2x leveraged XRP ETF. Their product uses derivatives to amplify daily returns, somehow hit the market before a spot XRP ETF, leaving many scratching their heads. 

"Very odd (maybe a first) that a new asset's first ETF is leveraged," said Bloomberg's senior ETF analyst Eric Balchunas. "Spot XRP still isn't approved, though our odds are pretty high."

The fact that this leveraged product exists actually strengthens the case for a spot XRP ETF. As Kaiko pointed out, if the SEC has already greenlit a riskier leveraged product, it becomes harder to argue that a spot ETF poses greater regulatory concerns.

While XRP leads in application count, Solana has been building their own, very compelling case for ETF, albeit through different avenues. SOL's ETF prospects received a major boost in March with the launch of CME-listed Solana futures, mirroring the trajectory that both Bitcoin and Ethereum followed before securing their own spot ETFs. Canada further paved the way by approving spot SOL ETFs, set to launch this week. Funnily enough, US regulators have looked to Canada's crypto ETF approvals as a testing ground, so the fact that it’s cool with Canada hopefully means it’ll be cool with the US. That said, early interest in US based SOL futures ETFs has been kind of lukewarm. Balchunas pointed out that, "The 2x XRP ETF already has more assets under management than both SOL futures ETFs combined."

SOL's technicals also work in their favor. Its a very high-speed blockchain and it has a robust developer ecosystem which make it a favorite among institutional investors, even as its US trading share has declined to about 16% (down from 25-30% in 2022). But the decline hasn't deterred ETF applications, as SOLs global liquidity and futures market presence provide a solid foundation for a spot product.

The next major milestone arrives on May 22, when the SEC must respond to Grayscale's spot XRP ETF filing. A favorable signal here could open the floodgates not just for XRP, but for Solana and other altcoins waiting in the wings.

But as usual, challenges remain. Demand for altcoin ETFs is still unproven. Ethereum's products have seen relatively muted interest compared to Bitcoin's, but that could be an Ethereum thing and not so much an ETF thing. Some institutions are still skeptical about venturing beyond the "Bitcoin and Ethereum" duopoly. XRP also lacks a CME futures market, traditionally a prerequisite for spot ETF approval, but its improving US trading volume could offset this.

The coming months will test whether the market has appetite for altcoin ETFs beyond Bitcoin. But if any cryptocurrencies are positioned to break through, it's these two. The question isn't just who will cross the finish line first, it's whether their success can redefine how institutions view the altcoin market altogether.