Aniket Pujari
BlackRock is likely to file for both Solana and XRP exchange-traded funds, according to Nate Geraci, president of The ETF Store.
In a Mar. 14 post on X, Geraci predicted that BlackRock would not allow competitors to dominate ETFs for two of the top five non-stablecoin assets. He expects a Solana (SOL) filing soon, while a Ripple’s (XRP) filing may come after the Securities and Exchange Commission lawsuit concludes.
Institutional demand for Solana and XRP ETFs could be significant. The SEC has already received applications from a number of asset managers, including Grayscale, Bitwise, Franklin Templeton, VanEck, Canary Capital, and 21Shares.
According to JPMorgan analysis shared with Fortune in January, Solana ETFs may see $3 billion to $6 billion in inflows within 6 to 12 months, while XRP ETFs may see $4 billion to $8 billion, based on the adoption rates of Bitcoin (BTC) and Ethereum (ETH) ETFs.
Despite the growing interest in XRP ETFs, the regulatory status of XRP is still unknown. In 2020, Ripple Labs was sued by the SEC, allegedly because XRP was offered for sale as an unregistered security.
A judge ruled in July 2023 that although institutional sales of XRP were considered unregistered securities offerings, the token isn’t necessarily a security when traded on secondary markets. However, the SEC has continued its legal battle, but the case could soon come to a resolution.
According to FOX Business journalist Eleanor Terrett’s Mar. 12 post on X, the SEC and Ripple are now working toward a resolution. Settlement talks reportedly focus on adjusting penalties and aligning with recent SEC policy changes.
Given the larger push for regulatory clarity in the cryptocurrency space, Terrett pointed out that ongoing discussions are about whether Ripple should still be subject to penalties under the new SEC leadership. If XRP is reclassified as a commodity, it could boost the chances of ETF approval.
