According to South Korea’s Shinhan Securities, XRP and SOL ETF approval could become a reality in 2025, with a forecasted likelihood of over 70%. Research analyst Park Woo-yeol predicts that Ripple (XRP) and Solana (SOL) may follow in Ethereum ETFs’ footsteps, setting the stage for a new era in cryptocurrency investment. If approved, these ETFs could propel XRP and SOL to challenge Bitcoin and Ethereum’s dominance in the crypto hierarchy. Key Takeaways from Shinhan Securities’ Report High Probability of ETF Approval Shinhan Securities estimates a 70% or higher chance for XRP and SOL ETFs to receive regulatory approval in 2025. This optimistic outlook aligns with growing institutional interest in diversifying crypto-based financial products. XRP and SOL’s Position in the Crypto Hierarchy Park predicts that XRP and SOL could compete for the third spot in the cryptocurrency hierarchy, trailing only Bitcoin and Ethereum. Such a development would solidify their status as leading altcoins. Bitcoin’s Price Forecast The report also forecasts Bitcoin trading between $80,000 and $130,000 in 2025, supported by annual volatility levels of approximately 50% . This range suggests potential bullish momentum for the broader crypto market. Why ETF Approval for XRP and SOL Matters Increased Accessibility ETFs allow traditional investors to gain exposure to cryptocurrencies without directly holding them, enhancing accessibility and adoption. Market Liquidity Approval of XRP and SOL ETFs could significantly boost liquidity for these altcoins, increasing their trading volume and price stability. Regulatory Milestone ETF approval would signify regulatory recognition, potentially encouraging further institutional investments and partnerships. Factors Supporting ETF Approval for XRP and SOL Ripple’s Legal Triumphs Ripple’s recent legal victories against the SEC have strengthened its position, reducing regulatory uncertainties around XRP. Solana’s Ecosystem Growth Solana’s robust ecosystem, encompassing DeFi, NFTs, and gaming, makes it an attractive candidate for ETF products. Growing Institutional Interest The success of Bitcoin and Ethereum ETFs highlights the growing demand for diversified crypto investment options, paving the way for altcoins like XRP and SOL. Challenges to ETF Approval Regulatory Scrutiny Despite positive trends, XRP and SOL ETFs could face delays or additional scrutiny due to regulatory uncertainties in major markets like the U.S. Market Volatility The inherent volatility of cryptocurrencies might deter some regulators from approving ETFs tied to altcoins. Competition Among Altcoins Other altcoins with strong fundamentals and market capitalization, such as Cardano (ADA) and Polygon (MATIC), could also vie for ETF approval, increasing competition. Impact of XRP and SOL ETFs on the Crypto Market Enhanced Market Credibility Approval of XRP and SOL ETFs would lend further credibility to the cryptocurrency market, attracting institutional investors. Shift in Investor Preferences ETFs could alter the investment landscape, with XRP and SOL potentially emerging as preferred alternatives to Bitcoin and Ethereum for diversified portfolios. Increased Adoption With easier access to XRP and SOL via ETFs, retail and institutional adoption is likely to accelerate, driving long-term growth. FAQs What is the likelihood of XRP and SOL ETFs being approved in 2025? Shinhan Securities estimates a 70% or higher probability of XRP and SOL receiving ETF approval this year. Why are XRP and SOL considered strong ETF candidates? Ripple’s legal victories and Solana’s growing ecosystem position them as attractive options for ETF products, supported by increasing institutional demand. How would ETF approval impact XRP and SOL prices? ETF approval could boost liquidity, market credibility, and adoption, likely leading to price appreciation for both altcoins. What are the challenges to XRP and SOL ETF approval? Regulatory scrutiny, market volatility, and competition from other altcoins could pose hurdles to their approval. How do XRP and SOL compare to Bitcoin and Ethereum? While Bitcoin and Ethereum remain dominant, XRP and SOL have unique use cases—Ripple focuses on cross-border payments, and Solana excels in high-speed blockchain solutions. What is the significance of Bitcoin’s price forecast in this context? The projected Bitcoin price range of $80,000–$130,000 highlights overall market optimism, which could support the case for altcoin ETFs like XRP and SOL. Conclusion The potential approval of XRP and SOL ETFs in 2025 could mark a transformative moment for the cryptocurrency market. With a 70% chance or higher, as forecasted by Shinhan Securities, these ETFs would increase accessibility, liquidity, and institutional participation in Ripple and Solana. As the crypto landscape continues to evolve, XRP and SOL stand poised to solidify their positions alongside Bitcoin and Ethereum in the digital asset hierarchy. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential.
