According to Nate Geraci, president of The ETF Store, there’s a strong possibility that BlackRock will submit applications for exchange-traded funds (ETFs) focused on both Solana and XRP.
In a post on March 14, Geraci suggested that BlackRock would aim to prevent rivals from monopolizing ETFs for these two leading non-stablecoin cryptocurrencies. He anticipates a filing for Solana (SOL) could be imminent, while a filing for Ripple’s (XRP) would likely follow the conclusion of the SEC lawsuit.
The institutional appetite for Solana and XRP ETFs could be quite pronounced. A number of asset managers, such as Grayscale, Bitwise, Franklin Templeton, VanEck, Canary Capital, and 21Shares, have already filed applications with the SEC.
Based on an analysis by JPMorgan shared with Fortune in January, Solana ETFs might attract between $3 billion to $6 billion within the first 6 to 12 months, while XRP ETFs could see inflows ranging from $4 billion to $8 billion, reflecting adoption rates similar to those of Bitcoin (BTC) and Ethereum (ETH) ETFs.
However, the regulatory status of XRP remains uncertain. Ripple Labs has been embroiled in a lawsuit with the SEC since 2020, allegedly because XRP was sold as an unregistered security.
A judge ruled in July 2023 that while institutional sales of XRP were categorized as unregistered securities offerings, the token itself might not be classified as a security when traded in secondary markets. Nevertheless, the SEC continues its litigation, although a resolution may be on the horizon.
According to journalist Eleanor Terrett’s March 12 post on X, negotiations between the SEC and Ripple are progressing towards a settlement. These discussions reportedly involve adjustments to penalties and consideration of recent changes in SEC policy.
In light of the broader push for regulatory clarity within the cryptocurrency industry, Terrett indicated that current talks are centered on whether Ripple should still face penalties under the new SEC leadership. A reclassification of XRP as a commodity could enhance the likelihood of ETF approval.