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Dogecoin, Solana and XRP Top ETF Contenders After Ethereum

Published June 17, 2024 4:36 PM
James Morales
Published June 17, 2024 4:36 PM

Key Takeaways

  • After the SEC approved Ether ETFs it set the stage for more crypto funds to be approved further down the line.
  • Top contenders for the next cryptocurrency to be packaged in an ETF include Solana, XRP and Dogecoin.
  • The three alt coins are the fourth fifth and sixth largest market capitalization cryptocurrencies respectively.

The Securities and Exchange Commission’s (SEC) move to allow spot Ether Exchange-Traded Funds (ETFs) has sparked interest in which cryptocurrencies could be next in line for ETF approval. 

If the SEC works its way through the top cryptocurrencies by market capitalization, BNB would be the logical contender. But many analysts think ETFs for Solana (SOL), XRP and even Dogecoin are a more likely outcome.

Standard Chartered Analyst Says SOL and XRP Funds Next

In a recent note, Standard Chartered analyst Geoffrey Kendric said the approval of Ethereum ETFs sets the stage for the next wave of crypto funds to follow.

“For other coins (eg. SOL, XRP), markets will look ahead to their eventual ETF status as well, albeit this is likely a 2025 story, not a 2024 one,” he said, adding that “for now, Bitcoin and Ether dominance will rise, with selective “next in line” winners as well.”

XRP Funds “Inevitable,” Says Ripple CEO

According to Ripple CEO Brad Garlinghouse, it is now “inevitable” that the SEC will approve ETFs that hold digital assets like XRP.

Having accepted that ETH isn’t a security, he argued there is a demand for a greater range of crypto-backed investment products. “People don’t want just exposure to one commodity […] you don’t just want a single-threaded asset exposure,” he said.

After XRP, the digital asset that gets mentioned the most in conversations about the future of crypto ETFs in the US is SOL. And speculators have bet more than $200,000 on the SEC approving Sol-based ETFs before the end of the year.

Over $200,000 Bet on Solana ETF Approval

At the time of writing, users on the decentralized prediction market Polymarket  had wagered over $202,000 on at least one Solana ETF being approved by the SEC before the end of 2024.

Despite interest in the wager, most people are betting against such an, with the odds of approval currently standing at around 14/1. This mirrors Kendric’s observation that any approval for alt coin funds is unlikely to occur this year.

Nonetheless, there are still those who believe that the SEC will allow more crypto ETFs before the current market cycle is over.

Arthur Hayes Predicts Dogecoin ETFs

In a recent discussion with Raoul Pal, BitMEX founder Arthur Hayes argued that “meme coins are here to stay” and that “Dogecoin is going to get an ETF by the end of this cycle.”

“It’s the oldest meme coin, it’s on Robinhood […] it’s a high market cap thing it’s been around for a while,” he emphasized.

Echoing Hayes, Pal also argued that meme coins have an enduring appeal for retail investors. He too said he thinks one of the asset managers that have already launched Bitcoin funds could potentially branch out into DOGE. However, he added the caveat that “it’s unlikely to be Blackrock.”

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