XRP and Solana (SOL) are emerging as primary candidates for U.S. spot ETF approvals due to their robust liquidity, with analysts from Kaiko indicating that XRP may be positioned to launch first. Their report emphasizes how XRP has increased its market share in the U.S. following the SEC’s 2021 lawsuit, contrasting with Solana, which has seen a decrease in market presence.

Key Insights:

• XRP and SOL have the deepest 1% market depth on regulated exchanges.
• XRP’s share has significantly risen since late 2024, effectively doubling Cardano’s liquidity amidst increased trading volume despite a lack of a solid futures market.
• Recently, Teucrium launched a 2x XRP ETF, which has gained intense market interest, resulting in over $5 million in trades on its inaugural day.

Analysts’ Commentary:

“The underlying market’s improving dynamics and the launch of a 2x XRP ETF last week position XRP ahead of other assets when it comes to approval,” noted Kaiko analysts. They also mentioned that assets like LTC may have a clear path to approval due to similar mechanisms with bitcoin, which recently gained ETF approval after legal victories over the SEC.

Despite XRP’s strong market fundamentals, the options market reflects a cautious outlook, indicated by a bearish sentiment ahead of upcoming expirations. The SEC is currently reviewing several applications for XRP spot ETFs, with critical deadlines fast approaching.