XRP and solana (SOL) are top candidates for a spot ETF approval in the U.S., driven by their high liquidity, with the Ripple-related token edging out among others for what could go live on the market earlier, Kaiko analysts shared in a Monday report.
Data from Kaiko Indices shows XRP and SOL boast the deepest 1% market depth on vetted exchanges, with XRP surging past SOL since late 2024 and doubling Cardanoโs ADA in liquidity.
Unlike bitcoin, which secured spot ETF approval after Grayscaleโs legal victory highlighted the SECโs inconsistent stance on futures and spot markets, XRP operates differently. It lacks a robust futures market, and its trading volume is largely offshore.
However, XRPโs U.S. spot market share has climbed to its highest since the SECโs 2021 lawsuit triggered delistings, while SOLโs U.S. share has slipped to 16% from a 2022 peak of 25โ30%.
XRPโs momentum is further bolstered by the recent launch of a 2x XRP ETF by Teucrium, which tracks European ETPs and swap agreements to deliver twice XRPโs daily returns. It racked over $5 million in volumes on debut day, as reported, become the providerโs โmost successful launch.โ
โThis underlying marketโs improving dynamics and the launch of a 2x XRP ETF last week position XRP ahead of other assets when it comes to approval,โ Kaiko analysts wrote. โAlthough some tokens, such as LTC, which have very similar consensus mechanisms to BTC and share similarities to commodities, could also have a clear path to approval.โ
However, despite XRPโs strong fundamentals, Deribitโs options market reflects caution, with a bearish skew in the implied volatility smile for April 18 expirations, signaling demand for downside protection.
The SEC has acknowledged several XRP spot ETF applications, with Grayscaleโs filing facing a critical May 22 deadline.
