As the cryptocurrency space continues to make headlines after Trump’s inauguration, many investors have one question on their minds: Will the U.S. Securities and Exchange Commission (SEC) approve XRP and Solana-based Exchange-Traded Funds (ETFs)? With many ETF applications already in the pipeline, attorney John Deaton shared his thoughts on the possibility of SEC approval, in an interview with Thinking Crypto.
The Rise of Cryptocurrency ETFs
The Bitcoin spot ETF, in particular, has had an unprecedented impact. Deaton pointed out that it became the most successful ETF in history within its first year, pulling in more capital than gold did over a period of two decades. This success hasn’t gone unnoticed, and Wall Street is keen on replicating the formula with other major cryptocurrencies, including Ethereum (ETH), XRP, and Solana (SOL).
As the third-largest cryptocurrency by market cap, XRP is particularly attractive. Deaton believes there’s a real possibility that XRP could even flip Ethereum in terms of market value, reaching around $7 to $8 per token. Though not predicting astronomical growth, he sees XRP gaining ground, especially before experiencing another market correction.
“I mean, XRP is the third largest crypto asset.I believe there’s a real good chance that it flips Ethereum,” he said.
Conclusion:
However, the path to approval isn’t straightforward. The SEC has been cautious when it comes to approving cryptocurrency ETFs, with concerns over market manipulation and investor protection. Still, given the scale of interest from institutional investors and the potential for huge profits, the likelihood of XRP and Solana ETFs being greenlit grows with each passing day.
While many in the crypto world are fixated on market prices, Deaton remains focused on the long-term potential of blockchain technology to bring about real-world change. “We can think of this industry in ways that help people, not just make a quick buck,” he said.
