XRP vs SOL
With Ethereum on the brink of getting an ETF in the United States, if the rumours turn out, the attention is already turning to the other alts - especially the ones "next in line" on the market cap ladder. It used to be straight forward just months ago. After Ethereum was XRP. Now, with Solana's rise in the recent months, it's not so certain. The two - $SOL and $XRP are now in a. kind of race to see who gets their ETFs first.
The massive interest in Solana, however, is indirect. The explosion in memes on the Solana ecosystem, triggered in part by $BONK and the Saga Phone, means people have to buy $SOL in order to buy those memes with the hope that they might pump. Some indeed have, including $BONK, $WIF and all manner of crazy digital animals in hats. On the negative side for Solana, the token doesn't have legal clarity in the United States. It's been accused of being a security by the SEC for instance, and may yet see its day in court. That same entity, the SEC, is responsible for approving ETFs. See the problem.
XRP on the other hand has legal clarity when it comes to whether or not it's a security. However, it is still tangled in a legal battle with the regulatory body that needs to approve it's ETF. It seems unlikely that Gary Gensler would approve such a thing as it de facto means the SEC is throwing in the towel. On the other hand Ripple has partnered with many financial institutions and governments, especially outside the United States, many of which will be applying for ETFs in the near future. XRP is a "banker's coin" effectively and is more likely to be embraced by the financial institutions than Solana. It all depends on what Gensler and the SEC do.
To complicate matters, there's chatter that the United States government might remove crypto from the jurisdiction of the SEC altogether. If that were to happen, and the new organisation is less hawkish with crypto, things could get interesting really quickly!
Peace & Love,
Adé
That's right, we are seeing this battle in the market now and in the near future we will see the SRP price going up a lot if its ETF gets approved.
I heard ETF later got it approved but haven’t made my findings