The growing momentum behind cryptocurrency exchange-traded funds (ETFs) has investors closely watching the potential approval of spot ETFs for major altcoins like Solana (SOL) and XRP. With Bitcoin and Ethereum spot ETFs already reshaping the investment landscape in 2024, attention has now turned to what comes next. Will it be Solana, known for its high-speed blockchain and booming ecosystem? Or XRP, the long-standing digital asset tangled in regulatory scrutiny but gaining ground with improved liquidity and market sentiment?
As both assets vie for a spot in the next wave of U.S. ETF approvals, understanding their differences in regulatory progress, market performance, and investor demand becomes critical. This article breaks down the current state of the Solana ETF and XRP ETF race, evaluates key factors influencing their potential success, and helps you determine which might be the better investment option moving forward.
The Current State of Altcoin ETF Approvals
Following the landmark approvals of Bitcoin and Ethereum spot ETFs, the crypto community is eagerly anticipating similar regulatory green lights for other leading digital assets. While the U.S. Securities and Exchange Commission (SEC) has yet to approve any altcoin-based spot ETFs, filings from major financial firms indicate strong institutional interest.
Grayscale, Bitwise, and VanEck have all submitted applications for both Solana and XRP spot ETFs. However, progress has been uneven. Canada recently made headlines by becoming the first jurisdiction to launch multiple spot Solana ETFs, signaling growing global acceptance of SOL as a viable asset class. In contrast, the U.S. remains cautious, with no final decisions announced as of mid-2025.
👉 Discover how evolving ETF regulations could unlock new investment opportunities in digital assets.
Despite the delay, market indicators suggest that an altcoin ETF approval could come soon—possibly within 2025. Polymarket betting odds show an 88% chance for a Solana ETF approval and a 77% likelihood for an XRP ETF. These figures have risen notably since Teucrium filed for an XRP ETF and Canadian regulators approved Solana products.
Regulatory Landscape: XRP Faces Higher Hurdles
One of the most significant differentiators between Solana and XRP is their regulatory standing in the United States. XRP has been at the center of a prolonged legal battle between Ripple Labs and the SEC over whether the token qualifies as an unregistered security. While recent court rulings have favored Ripple on certain counts—providing some clarity—uncertainty still lingers.
This ongoing case creates a higher barrier for an XRP spot ETF. The SEC may hesitate to approve an ETF for an asset still under litigation, even if partial rulings have been favorable. In contrast, Solana does not face any direct enforcement actions from U.S. regulators, giving it a cleaner regulatory profile.
However, experts from research firm Kaiko argue that XRP leads in the U.S. spot altcoin ETF race due to its superior liquidity on domestic exchanges. High trading volume and tight spreads reduce slippage and make it more attractive for ETF issuers seeking efficient price discovery.
Market Performance and Investor Demand
When evaluating which ETF might perform better post-approval, historical price behavior and investor demand offer valuable insights.
Solana has demonstrated explosive growth over the past few years, driven by its high-throughput blockchain, vibrant decentralized application (dApp) ecosystem, and strong developer activity. Its price surged alongside increased adoption in decentralized finance (DeFi) and non-fungible tokens (NFTs), making it a favorite among retail and institutional investors alike.
XRP, on the other hand, has traditionally focused on cross-border payments and banking partnerships. While its price movements are often more stable than volatile altcoins, it has shown significant upside potential during periods of positive regulatory news. The asset previously outperformed Solana during key moments in the Ripple vs. SEC case, suggesting that final resolution could trigger another rally.
👉 See how real-time market data can help you anticipate crypto price movements ahead of major events.
From a technical standpoint, XRP’s higher liquidity on U.S.-based platforms gives it an edge in terms of tradability and market depth—key considerations for ETF creation. Lower slippage means fewer tracking errors and smoother fund operations.
Key Factors Influencing ETF Approval Odds
Several variables are shaping the trajectory of both ETF applications:
- Regulatory Clarity: SOL holds an advantage due to the absence of active litigation.
- Market Liquidity: XRP leads in trading volume on U.S. exchanges, enhancing its case for efficient ETF pricing.
- Institutional Support: Filings by Grayscale and VanEck signal confidence in both assets.
- Global Precedents: Canada’s approval of Solana ETFs sets a positive precedent for international adoption.
- SEC Leadership Changes: The appointment of Paul Atkins as SEC chair has boosted market optimism, with expectations of a more crypto-friendly approach.
While Polymarket currently favors Solana for approval, XRP’s strong fundamentals and improving regulatory outlook keep it firmly in contention.
Frequently Asked Questions (FAQs)
Q: Is a Solana ETF approved in the U.S.?
A: As of mid-2025, no Solana spot ETF has been approved by the SEC. However, multiple applications are under review, and Canada has already launched several Solana ETFs.
Q: Has an XRP ETF been approved anywhere?
A: Not yet. There are no approved XRP spot ETFs globally, though Teucrium’s filing in the U.S. has increased speculation about future approval.
Q: Why is XRP considered more liquid than Solana in the U.S.?
A: XRP consistently ranks among the most traded cryptocurrencies on U.S. exchanges, offering deeper order books and tighter bid-ask spreads compared to SOL.
Q: Could Ripple’s legal case delay an XRP ETF?
A: Yes. Although recent rulings have been favorable to Ripple, unresolved aspects of the lawsuit may cause the SEC to delay approval until full clarity is achieved.
Q: Which altcoin ETF is more likely to be approved first?
A: Current Polymarket odds favor Solana (88%) over XRP (77%), largely due to its clearer regulatory status.
Q: How would an ETF approval affect Solana or XRP prices?
A: Historically, ETF approvals have led to short-term price surges due to increased institutional inflows and media attention. Both SOL and XRP could experience similar boosts upon approval.
👉 Stay ahead of market-moving events with advanced analytics tools designed for crypto investors.
Final Verdict: Which ETF Is Better?
Determining whether a Solana ETF or XRP ETF is "better" ultimately depends on investor priorities.
If you value regulatory safety and technological innovation, Solana presents a compelling case. Its robust ecosystem, scalability, and lack of active litigation make it a strong candidate for early approval and long-term growth.
If you prioritize liquidity, lower volatility, and potential upside from regulatory resolution, XRP may be the preferred choice. A final ruling in Ripple’s favor could act as a powerful catalyst, driving both price appreciation and institutional adoption.
While both assets have merit, Solana currently holds a slight edge due to higher perceived approval odds and stronger momentum in ecosystem development. However, XRP remains a close contender, especially if its legal challenges are fully resolved.
As the crypto market evolves and regulatory frameworks mature, the first approved altcoin spot ETF could set a precedent for dozens more. Investors should monitor SEC decisions, trading volumes, and macroeconomic trends to position themselves strategically ahead of these transformative developments.
Core Keywords: Solana ETF, XRP ETF, SEC approval, cryptocurrency ETF, spot ETF, altcoin investment, crypto regulation, digital asset investing