Following the recent approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States, the cryptocurrency market is now keenly awaiting the potential introduction of ETFs.
Following the recent approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States, the cryptocurrency market is now keenly awaiting the potential introduction of ETFs for XRP and Solana.
Tim McCourt, senior managing director at CME Group, highlighted the significance of this development during a panel at Ripple Swell 2024, stating that a crucial first step has been made with the establishment of an XRP reference rate and a real-time index.
McCourt noted that the availability of over 50 real-time prices and reference rates is instrumental for product providers like Bitwise, providing a regulated benchmark for potential ETFs.
His comments arrived shortly after the Securities and Exchange Commission (SEC) received an application for an XRP ETF from Canary Capital, marking the second such application following one from Bitwise Asset Management, according to Bloomberg ETF analyst Eric Balchunas.
The introduction of Bitcoin and Ether ETFs has already proved transformative for the cryptocurrency sector, contributing to increased trading volumes and open interest. McCourt remarked that the surge in trading activity correlates with the emergence of these ETFs, indicating a substantial acceleration in market growth.
Despite this optimism surrounding ETFs, XRP's market performance has been tepid, with a price increase of just over 8% over the past year, in stark contrast to Bitcoin's more than 154% rise during the same timeframe.
In addition to XRP, there is speculation about a potential Solana ETF. The approval of Brazil's first Solana ETF on Aug. 7 has stirred interest, although the timeline for a U.S.-based counterpart remains uncertain.
Industry experts suggest that the approval of a Solana ETF could serve as a significant catalyst for its price, particularly as the current probability of approval is not fully priced into the market.
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