Regulatory Hurdles Stall Spot Solana and XRP ETFs Amid Market Demand 

  • SEC delays approval of spot Solana and XRP ETFs, citing regulatory challenges and unfavorable market conditions.
  • Political shifts, particularly in the U.S. elections, may impact future crypto ETF approvals, with a potential boost under a Republican administration.
  • Solana’s price has dropped 2% amid ETF approval delays, while XRP saw a 10% rise following positive legal developments for Ripple.

The cryptocurrency community is closely observing the possible introduction of spot Solana and XRP ETFs after The U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin and Ethereum ETFs earlier this year. 

Notably, growing interest has been expressed by investors, especially those from institutional sectors, as the communities around XRP and Solana continue to build their respective ecosystems. Experts caution that there are still regulatory obstacles to overcome, which tempers hopes for prompt approvals.

SEC Approval Delays Weigh on Solana and XRP ETFs

Nate Geraci, the president of The ETF Store and co-founder of The ETF Institute, recently voiced his skepticism regarding the approval of more spot crypto ETFs, particularly for XRP and Solana. He identified the regulatory framework and the state of the market as the main obstacles. 

Additionally, Geraci stated that it might take a year or two before the SEC approves Solana and XRP ETFs, despite some momentum from the approval of spot Ethereum and Bitcoin ETFs. He stressed that there are no strong signs that either asset will be approved anytime soon.

Political Uncertainty and the Future of Crypto ETFs

Notably, the future of cryptocurrency exchange-traded funds (ETFs) may be significantly impacted by the November US elections. Experts in the market speculate that a change in leadership could result in a more hospitable regulatory framework for digital assets. 

A Republican victory, particularly with regard to presidential candidate Donald Trump and pro-XRP activist John Deaton, might indicate a shift in attitude toward cryptocurrency regulations and open the door for the creation of a spot XRP ETF. On the other hand, experts forecast a prolonged slow rollout of financial products related to cryptocurrencies if the current administration is kept in office.

Investor Sentiment Dampened by Delays

Furthermore, the mood of the market has been affected by the delays in ETF approvals, especially for Solana. Despite rising demand and the recent approval of two Solana ETFs in Brazil, the price of Solana fell as a result of the SEC’s unwillingness to approve a spot ETF for the asset. 

Besides, the Solana price has been under pressure due to the lack of U.S. approval. According to coinmarketcap, it is currently trading at $136, down more than 2% over the previous month. In contrast, XRP has experienced a minor uptick in momentum, with its price rising by almost 10% following Ripple’s partial victory in its legal dispute with the SEC.

The post Regulatory Hurdles Stall Spot Solana and XRP ETFs Amid Market Demand  appeared first on Crypto News Land.


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