Solana ETF Approval Unlikely Before 2025, Expert Nate Geraci Explains Key Challenges

• The crypto community is buzzing with anticipation for potential spot Solana and XRP ETFs, following recent approvals for Bitcoin and Ethereum ETFs.
• However, many industry experts believe these approvals face significant delays due to regulatory challenges and market conditions.
• Nate Geraci, president of The ETF Store, has voiced his doubts regarding the imminent approval of spot Solana and XRP ETFs.

The potential launch of spot Solana and XRP ETFs might be further away than expected, with regulatory hurdles and market skepticism hindering progress.

Nate Geraci’s Perspective on Spot Solana and XRP ETFs

Nate Geraci, a prominent figure in the ETF industry, has recently commented on the likelihood of new spot crypto ETFs for Solana and XRP. He stated that, given the current regulatory environment and market dynamics, the chances of seeing these ETFs approved within the next couple of years are slim. Geraci mentioned on social media that nothing in the current landscape suggests a spot Solana or XRP ETF is feasible in the near term.

Regulatory Environment and Market Conditions

Geraci also highlighted the impact of the current U.S. administration on the regulatory environment for cryptocurrencies. He noted that the approval of these ETFs might hinge on the results of the upcoming U.S. elections. A win for candidates with a pro-crypto stance, like Donald Trump or John Deaton, could potentially pave the way for more favorable crypto regulations. In contrast, a victory for more crypto-cautious candidates like Kamala Harris could stall progress for the industry.

Factors Influencing Sentiments Toward Crypto ETFs

Several key factors are driving the anticipation and sentiment around potential crypto ETFs. The approval of Ethereum as a proof-of-stake asset for ETFs by the SEC and subsequent filings by VanEck and 21Shares for a Solana ETF have fueled investor interest. However, these filings have not progressed, and skepticism remains due to the lack of approval by the SEC. The case of Brazil approving two spot Solana ETFs demonstrates international differences in regulatory approaches, suggesting the U.S. may need to adopt a more flexible regulatory stance before any significant progress is made.

Solana ETF Prospects

The enthusiasm surrounding a potential Solana ETF increased after the approval of Ethereum ETFs. Despite this, VanEck and 21Shares’ filings have yet to be approved by the SEC. Their 19b-4 filings have been removed from the Cboe website, suggesting reluctance from the SEC. VanEck’s head of research, Matthew Sigel, mentioned that the U.S. might need a minor regulatory tweak for Solana ETF approval to move forward. Solana’s price has been adversely affected by these delays, reflecting investor frustration and market uncertainty.

Outlook for XRP ETFs

The prospects for an XRP ETF improved following Ripple’s partial victory in its lawsuit against the SEC. This legal win has reduced regulatory uncertainties, bolstering the odds for an XRP ETF. Developments like the Grayscale XRP Trust and the XRP Index by CME further indicate that XRP is increasingly integrating into mainstream financial systems. Ripple’s leadership, including President Monica Long and CEO Brad Garlinghouse, have expressed optimism about the future of an XRP ETF, boosting investor confidence.

Conclusion

In summary, while the approval of spot ETFs for Solana and XRP appears unlikely in the immediate future, ongoing legal and regulatory developments could change the landscape. Industry experts like Nate Geraci stress the importance of monitoring political shifts and legislative changes, which could influence the trajectory of crypto ETF approvals. Investors should remain informed and cautious, considering the complexities involved in the evolving regulatory environment.