XRP could be the next big cryptocurrency to get a spot ETF approved in the U.S., even before coins like Solana (SOL) or Dogecoin (DOGE), according to crypto research firm Kaiko.
The report, published Monday, said XRP and SOL have the deepest 1% market depth on trusted exchanges. This means both tokens have enough activity and liquidity in the market to handle big trades without prices going crazy.
However, between the two, XRP has recently pulled ahead. Since the end of 2024, XRP has passed SOL in liquidity and now has twice as much as Cardano’s ADA.
“Although some tokens, such as LTC, which have very similar consensus mechanisms to BTC and share similarities to commodities, could also have a clear path to approval,” Kaiko analysts wrote.
The Bitcoin ETF was approved after a legal fight involving Grayscale and the SEC, which showed that the SEC was being unfair in how it handled different types of ETFs. While Blackrock came up with rock solid fillings to get approval for their iShares bitcoin etf fund.
XRP follows a different story. XRP does not have a strong futures market, and most of its trading happens outside the U.S. But even so, XRP’s U.S. trading has recently gone way up, the highest it’s been since 2021.
That’s when the SEC sued Ripple, which caused many platforms in the U.S. to stop offering XRP. Since then, XRP has been slowly making a comeback. Meanwhile, Solana’s share in the U.S. has dropped from about 30% in 2022 to just 16% now, according to Kaiko.
Another reason XRP is getting more interest is the recent launch of a new 2x XRP ETF by Teucrium, which gives investors twice the daily returns of XRP. It started strong, with $5 million in trading volume on its first day. Teucrium called it their “most successful launch.”
Still, some traders are staying cautious. On the trading platform Deribit, there has been more interest in buying protection in case XRP goes down.
The SEC is currently reviewing XRP ETF applications, including one from Grayscale, which has a big decision deadline on May 22.
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