XRP could possibly be the almost certainly candidate for the subsequent spot crypto ETF approval, claims Kaiko analysis.
XRP is rising as presumably the almost certainly candidate amongst potential altcoin Alternate Traded Funds. Based on a current report by Kaiko, XRP (XRP) is main all different tokens by the quantity of ETF filings, which stand at 10. Solana (SOL) is in second place, with filings by 5 ETF issuers.
XRP’s liquidity makes it a key candidate for ETF approval
Based on Kaiko, each XRP and Solana are possible candidates for approval. It’s because each property have a extremely liquid spot market, which the U.S. Securities and Alternate Fee will keep in mind when processing applications. XRP and Solana have the very best 1% market depth, which is a measure of near-the-price liquidity.
XRP and SOL stand out as two of the preferred property for ETF applications and are additionally among the many most liquid. A extremely liquid spot market is vital for creating environment friendly structured merchandise, and the previous SEC management was extremely delicate to this.
Particularly, XRP’s market depth took off close to the tip of 2024, which was additionally when XRP overtook Solana by market cap. Nonetheless, neither token has an lively futures market, which Kaiko factors out was a key factor in the SEC’s resolution to checklist Bitcoin’s ETF product.
What’s extra, its buying and selling quantity is generally concentrated outdoors the U.S., which is one other concern for the SEC. Nevertheless, the home share in buying and selling quantity has considerably improved for XRP since its delisting from U.S. exchanges in 2021.
In distinction, for Solana, the share of home quantity has persistently declined, down from a 30–25% vary to 16%. This enchancment in home buying and selling quantity additionally places XRP ahead relating to ETF issuance.
