Following the launch of the first cryptocurrency-based exchange-traded funds (ETFs) in the United States, investors are now eager to see what the next big digital asset trading product will be.
In response to speculation about an XRP ETF, Tim McCourt, senior managing director at CME Group, indicated that significant progress has been made.
During a panel at Ripple Swell 2024, McCourt commented:
“We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem […] We have upwards of 50 real-time prices and reference rates. That’s key for product providers like Bitwise because they can at least point to a fully regulated benchmark.”
McCourt’s remarks followed the Securities and Exchange Commission’s receipt of a second XRP ETF application from Canary Capital, as reported by Bloomberg ETF analyst Eric Balchunas.
ETFs Drive Crypto Industry Growth
The introduction of the first spot Bitcoin and Ether ETFs marked a pivotal moment for the cryptocurrency industry, adding credibility to the sector.
McCourt emphasized how ETFs have contributed to the growth of the industry:
“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.”
XRP or Solana ETF First?
While excitement builds around the potential for an XRP ETF, the possibility of a spot Solana ETF has also caught the attention of crypto enthusiasts, who view it as a potential catalyst for price growth.
Brazil’s approval of its first Solana ETF on August 7 has set a global precedent. Though a U.S.-based spot Solana ETF is still uncertain, its approval could have a significant impact on Solana’s price, according to Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio.
“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”
Others, like Manthan Dave, co-founder of Palisade, a Ripple-backed digital asset custody platform, predict the approval of a Solana ETF by the end of 2024.
With the increasing adoption of cryptocurrency ETFs, industry growth is accelerating, and the anticipation of new products, such as XRP and Solana ETFs, continues to drive investor excitement.