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Following the launch of the first cryptocurrency-based exchange-traded funds (ETFs) in the US, the industry is speculating about the potential for a XRP ETF. CME Group’s Tim McCourt suggested that the creation of ETFs has fast-tracked the growth of cryptocurrency. Two applications for a XRP ETF have been made to the US Securities and Exchange Commission. Despite these developments, XRP’s price has seen minimal growth. There is also speculation about the launch of a Solana (SOL) ETF, following the approval of a Solana ETF in Brazil.

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Just after the launch of the first cryptocurrency-based exchange-traded funds (ETFs) in the US, folks are looking forward to the next new digital products to invest in. When asked about a possible XRP (a form of digital currency) ETF, Tim McCourt from CME Group mentioned that the first big step is already made.

Here’s what he said at Ripple Swell 2024, an event discussing the future of money and technology: “We have an XRP reference rate and real-time index. These are the first steps in developing this new investment system. We’ve got over 50 real-time prices and reference rates, a great tool for product providers like Bitwise who can now point to a fully regulated benchmark.”

Just a week earlier, the US Securities and Exchange Commission received its second application for an XRP ETF. This time from Canary Capital, as reported by Bloomberg ETF analyst, Eric Balchunas. Canary followed in the footsteps of Bitwise Asset Management, another investment firm that’s also applied for an XRP ETF.

The creation of the first Bitcoin and Ether ETFs was a game-changer for the cryptocurrency industry – it helped make the digital currency world more legit. According to McCourt, the introduction of ETFs really sped up the growth of the industry. He said, “I don’t think it’s accidental that some of our largest open interest days and volume-based futures have happened after the advent of the ETFs because this ecosystem is really accelerating.”

Despite the buzz around a future XRP ETF, the token’s price hasn’t been making any significant leaps lately. Over the past year, the XRP price only rose a bit over 8%, while Bitcoin’s price shot up over 154% during the same period, according to data from Cointelegraph.

But don’t be deceived, ETFs can potentially shoot up the price of the digital currency in question. We’ve seen this with Bitcoin, where spot ETFs were responsible for about 75% of new investment in Bitcoin by Feb. 15, pushing its price over the $50,000 mark.

Besides XRP, people are also speculating about a possible spot Solana (SOL) ETF. The first Solana ETF was approved in Brazil back on Aug. 7, which has sparked a lot of interest among cryptocurrency lovers worldwide.

While we’re not sure whether the US is going to approve a Solana ETF anytime soon, Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, thinks that if this happens it could lead to a significant increase in Solana’s price. “Since it’s still uncertain, a US ETF approval could push Solana’s price up since the chance of this happening is low, so it’s not yet accounted for in the current price,” he told Cointelegraph.

Manthan Dave, co-founder of Palisade, a digital asset holding company backed by Ripple, thinks that a Solana ETF could possibly be launched by the end of 2024. So watch this space.

Source: Cointelegraph