The crypto world is buzzing with excitement over the approval of eight Ethereum ETFs by the SEC. This milestone has sparked discussions about the potential for ETFs based on other cryptocurrencies, such as Ripple’s XRP and Solana’s SOL. While the approval marks a positive step forward, there are still significant hurdles to overcome for some cryptocurrencies.

The Roadblocks for an XRP ETF

Matthew Sigel, who leads digital asset research at VanEck, recently shared his insights on the potential for an XRP ETF during an appearance on the Thinking Crypto podcast. He explained that creating an ETF involves more than just regulatory approval. It requires confidence from multiple stakeholders, including the regulator, the issuer, and support from market players like exchanges, market makers, and custodians.

Currently, XRP does not meet these requirements. According to Sigel, there is a lack of client demand and internal conviction within the company to support an XRP ETF. Without strong backing from key market participants and clear demand from investors, the chances of getting regulatory approval for an XRP ETF remain slim.

Sigel stressed that these elements are crucial. Without them, it’s challenging to see XRP getting the necessary approval for an ETF in the near term. This situation highlights the obstacles that XRP faces, making it an unlikely candidate for an ETF at this point.

Solana’s Promising Prospects

On the other hand, Solana seems to be in a much better position to benefit from an ETF. During their review of Ethereum, VanEck also took a closer look at Solana. They found that Solana shares important characteristics with Ethereum, such as decentralization and security. No individual or entity can control more than 20% of the tokens in circulation or halt the blockchain unilaterally. These attributes make Solana a strong candidate for an ETF.

Sigel also mentioned that Solana is seen as a commodity and provides access to the second-largest open-source app store. These factors enhance the likelihood of regulatory approval for a Solana ETF. He believes that regulators will eventually recognize these strengths and approve derivative products based on Solana.

The approval of Ethereum ETFs by the SEC has opened the door to new possibilities for cryptocurrencies. While XRP faces significant challenges before it can see an ETF, Solana appears to meet the necessary conditions already. Investors are now watching closely, hoping that Solana will soon become one of the next cryptocurrencies to gain the benefits of an ETF.