Tim McCourt of CME Group announced an XRP reference rate and index, a pivotal step toward establishing an XRP ETF.
The SEC received its second XRP ETF application from Canary Capital, reflecting growing demand for crypto ETFs.
Brazil's recent approval of a Solana ETF could set a precedent for future US ETF developments, impacting crypto prices significantly.
The cryptocurrency industry is already excitedly anticipating the possible introduction of XRP and Solana ETFs following the successful launch of spot Bitcoin and Ether ETFs. At the Ripple Swell 2024 conference, Tim McCourt, senior managing director at CME Group, declared that a major advancement in the creation of an XRP ETF has been made.
“We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem,” McCourt explained. He noted that the establishment of over 50 real-time prices and reference rates is crucial for product providers like Bitwise Asset Management, allowing them to refer to a fully regulated benchmark.
SEC Applications and Market Legitimacy
This development comes on the heels of the Securities and Exchange Commission (SEC) receiving its second application for an XRP ETF from Canary Capital, as reported by Bloomberg ETF analyst Eric Balchunas. In reaction to Bitwise Asset Management's previous statement, Canary has released a statement demonstrating the increasing demand for bitcoin exchange-traded funds (ETFs).
The trading landscape for digital assets changed and the industry's legitimacy grew with the launch of the first bitcoin ETFs in the US. McCourt highlighted how the introduction of ETFs has boosted the business by significantly raising trading volume and open interest.
With just an 8% gain over the last year, XRP has struggled to make significant progress in comparison to Bitcoin's 154% climb. This is in spite of the anticipation surrounding the potential XRP ETF.
The Future of Solana ETFs
ETFs have historically had a positive and significant impact on the price of the coin on which they are based. Nearly 75% of the growth in value of Bitcoin occurred from fresh investments made primarily from spot ETFs after its value surpassed $50,000.
In addition to XRP, the uncertain possibility of a spot Solana ETF has generated excitement among investors. With the approval of its first Solana ETF recently, Brazil established a precedent that may impact similar developments in other markets. Though it's unclear when a US-based Solana ETF would launch, it might be a big price driver for cryptocurrencies.
The launch of ETFs continues to be crucial in determining the direction of the cryptocurrency landscape, as the market closely monitors these events. With the approval of its first Solana ETF recently, Brazil established a precedent that may impact similar developments in other markets. Although the exact launch date of a US-based Solana ETF is unknown, it might significantly influence cryptocurrency prices.
As the market keeps a close eye on these developments, the introduction of ETFs remains essential in defining the course of the cryptocurrency environment.
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