The price of Ripple rose to a record high this week amid prospects of the SEC approving an XRP exchange-traded fund. JPMorgan analysts expect such an ETF to generate inflows of about $8 billion in the first year, a move Messari analysts believe would make XRP a larger coin than Ethereum.
Approval of XRP and Solana ETF could lead to other funds. Here are some of the top cryptocurrencies that may receive immediate ETF approvals in 2025.
Litecoin (LTC)
The price of Litecoin jumped this week and reached its highest level since December 5 as the odds of immediate ETF approval rise. The rise was triggered by comments made by the SEC regarding Canary’s ETF application. ETF experts believe the communication between the SEC and Canary is a sign that the agency plans to grant approval soon.
The Litecoin ETF is fairly easy to get approval from the Securities and Exchange Commission (SEC) because the cryptocurrency is similar to Bitcoin. It is a hard fork of Bitcoin, which means it is a proof-of-work cryptocurrency and is considered a commodity by the SEC. Other similar currencies that could receive ETF approvals are Bitcoin Cash, Ravencoin, and Ethereum Classic.
The main problem with Litecoin is that it is unclear whether institutional investors will be attracted to it because it tends to underperform Bitcoin.
Hedera Hashgraph (HBAR)
Hedera Hashgraph is another cryptocurrency to watch after XRP ETF approval as it has higher chances of approval. HBAR is the best Proof of Stake coin that has gained popularity among institutions. Companies such as Google, Aberdeen, IBM, Hitachi, and Nomura have become members of its board of directors.
Canary has also applied for the HBAR Spot ETF and analysts expect it to be approved this year. In a recent note, Eric Balchunas, The ETF would be approved because the SEC did not view it as a security, Bloomberg’s chief ETF analyst said.
Like Litecoin, Hedera’s main challenge is that its ecosystem in industries like DeFi is significantly down, making it unattractive to investors.
We expect a wave of cryptocurrency ETFs next year, but not all at once. First, the combined ETFs will likely be btc + eth, then prob Litecoin (bc has a fork btc = commodity), then HBAR (bc is not classified as a security) and then XRP/Solana (which is classified as pending securities). ..
Chain link (link)
Chainlink is another top cryptocurrency to watch after XRP ETF approval. It is an American cryptocurrency project that plays a crucial role in the industry. It has evolved into the largest oracle network, connecting off-chain data to on-chain data. Major players like AAVE and Compound widely use chain link.
Donald Trump’s company World Liberty Financial (WLFI) has invested in Chainlink. Therefore, there is a possibility that the LINK ETF will be approved and acquire significant assets. Grayscale LINK Trust has accumulated over $28 million in assets, indicating there is demand for the token.
Read More: Chainlink Price Prediction: Here’s Why LINK May Rise to $50 Soon
Excellent (XLM)
Stellar is the second best cryptocurrency to buy with high odds of ETF approval. These possibilities are primarily because Canary has already applied for a Stellar ETF.
Notably, Stellar and Ripple are similar assets with one of the closest correlations in the cryptocurrency industry. Stellar was founded by Jed McCaleb, one of the founders of Ripple, and both networks operate in the payments space.
These factors mean that the Canary ETF will be approved if the SEC moves forward with approving XRP later this year.
Other potential cryptocurrencies to watch after the XRP ETF
The SEC will likely receive other cryptocurrency ETFs if it approves an XRP fund. Most of the ones that will be approved will mostly be those made by American entrepreneurs. These potential funds are Polkadot, Avalanche, Dogecoin, Sui, Shiba Inu, and Uniswap.
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