21Shares Chooses Solana Over XRP for Next ETF Despite Rising XRP Market Activity

• The U.S. financial markets celebrated the launch of several spot Ethereum ETFs on July 23, 2024.
• The first trading day witnessed a record volume of $1.1 billion, showcasing robust investor interest and confidence in ETFs.
• Following Bitcoin and Ethereum, several altcoins are poised to jump on the ETF bandwagon, with XRP being a notable candidate if it clears regulatory hurdles.

Discover the latest developments in the crypto ETF space and the potential for an XRP ETF amidst the thriving market.

The Lucrative Launch of Ethereum ETFs

The recent debut of spot Ethereum ETFs on July 23, 2024, marked a significant milestone in the U.S. financial markets. On the inaugural trading day alone, these ETFs attracted a staggering $1.1 billion in trading volume. This impressive figure underscores the heightened interest and confidence investors have in Ethereum and ETFs as a whole, further cementing the role of ETFs in broadening market access.

Potential for XRP ETF Amidst Regulatory Clarity

21Shares CEO and co-founder Hany Rashwan recently expressed his bullish stance on XRP Coin and hinted at the potential launch of a spot-based XRP ETF. Speaking in an interview with Paul Baron Network, Rashwan highlighted that despite delays in applying for an XRP ETF, such a move aligns seamlessly with 21Shares’ global strategy. Currently, 21Shares stands as the largest issuer of XRP Exchange Traded Products (ETPs), managing $69.16 million in assets with a year-to-date return of 7.54%.

Rashwan underscored the promising investment potential of XRP, citing extensive research and strong community support. However, he stressed that regulatory clarity on XRP’s security status is crucial for alleviating concerns and advancing the launch of the ETF. While an official application to the SEC has not yet been made, Rashwan maintained that launching an XRP ETF is integral to the company’s global vision.

Solana Emerges as a Preferred Choice for ETFs

In a strategic pivot, 21Shares and VanEck opted to pursue a Solana (SOL) ETF over an XRP ETF. Rashwan explained that the similarities between Solana and Ethereum influenced this decision, particularly given Ethereum’s earlier ETF success, which could potentially ease the process of securing regulatory approval. Currently, the company offers spot ETFs for Bitcoin (BTC) and Ethereum (ETH) and is also seeking approval for a Solana ETF. This focus highlights 21Shares’ commitment to expanding its product offerings while navigating the regulatory landscape and seizing emerging investment opportunities.

XRP’s Market Activity and Speculative Buzz

Recent market activity shows a significant uptick in XRP trading volumes, with a 21% rise reaching $2.07 billion in the past 24 hours. Over 3 billion XRP Coins were traded. This surge in liquidity suggests that XRP is well-positioned to meet increasing market demand. Part of this market buoyancy is attributed to the successful launch of the Ethereum ETF, which has generated a wave of optimism that extends to XRP as well.

Additionally, rumors are circulating about a possible settlement or decision in the ongoing lawsuit between Ripple Labs Inc. and the SEC, expected as soon as July 25. Speculation around a closed-door meeting convened to discuss various matters, including “Resolution of Administrative Proceedings” and “Settlement of Claims,” has intensified. If true, experts believe a favorable resolution could bolster XRP’s price, potentially pushing it beyond the $1 mark.

Conclusion

The inception of Ethereum ETFs has ignited substantial interest and activity in the market, laying the groundwork for other cryptocurrencies to consider similar avenues. While 21Shares eyes the potential of a future XRP ETF, the immediate focus remains on Solana, driven by both regulatory and strategic considerations. As the crypto market continues to evolve, investors remain keenly tuned to regulatory developments and market trends that could shape future investment opportunities.