Emily Walker
This year has seen a spike in institutional adoption of cryptocurrencies, especially driven by Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). Analyst Eric Balchunas from Bloomberg notes that with a supportive US presidential administration and a broader market rally, more crypto ETFs could emerge next year, potentially featuring XRP (XRP), Solana (SOL), and a mix of dual ETFs.
Following a brief drop below $2.40 last week, XRP has regained strength, rising to $2.50 to become the third-largest cryptocurrency by market capitalization, just edging out USDT by $2 million. In contrast, SOL has struggled to return to its peak from November, when it hit $262.93.
Despite these fluctuations, both cryptocurrencies have performed well this year, and their prospects could improve further if Balchunas’s forecasts hold true.
Predictions for the Launch of LTC, HBAR, XRP, and SOL ETFs
Balchunas predicts that several ETFs are likely to be introduced by 2025, although not all simultaneously. These include Litecoin (LTC), Hedera (HBAR), XRP, SOL, as well as a combined BTC/ETH ETF.
According to him, LTC ETFs are expected to arrive first since LTC is a hard fork of BTC and isn’t classified as a security by the SEC. Similarly, HBAR appears free from legal complications with the SEC.
The introduction of XRP and SOL ETFs may be stalled until a new SEC chairman is appointed, as the current administration views both as securities—despite recent court findings suggesting otherwise.
With Donald Trump appointing Paul Atkins, a supporter of crypto, as the new SEC chair, there’s hope that regulatory pressures on these assets may lessen.
Companies like Hashdex, Franklin, and Bitwise have filed for dual BTC and ETH ETFs, with only Canary seeking LTC and HBAR ETFs. Balchunas expressed doubt about whether there is sufficient investor interest for altcoin ETFs.
Introducing Solaxy: Enhancing Solana’s Scalability
Speculation about a SOL ETF has been ongoing, yet despite becoming the third-largest cryptocurrency, SOL is currently trailing XRP by $40 million, possibly due to concerns regarding Solana’s network stability.
Historically, Solana has experienced congestion, failed transactions, and service interruptions, with the latest significant outage occurring in February 2024, lasting nearly five hours.
This issue partly stems from Solana’s sudden rise in popularity. The influx of many meme coin projects attracted by its high speed and efficient tools resulted in strains on the network, which it was ill-prepared to manage.
The new Layer-2 solution Solaxy seeks to expand Solana’s capabilities by ensuring a more efficient and cost-effective operation. It achieves this by relieving the main chain of transactions that could lead to congestion and outages.
Solaxy’s native token, $SOLX, serves more than just transaction fees; its multi-chain design connects Solana with Ethereum, facilitating seamless activity across both platforms.
The token is currently available for presale at $0.001566, but prices will rise soon. Within a week, the project has gathered nearly $2 million, primarily earmarked for further development.
A portion of this funding will be allocated to early supporters through staking rewards, with current staking offering an impressive APY of 1,827%, providing a valuable opportunity for returns as $SOLX prepares for listing on major exchanges.
For more information about Solaxy or to participate, visit the official Solaxy website or check out their X channel.
Will Solaxy Elevate Solana Back to #3?
While it might be premature to suggest that SOLX could multiply investments by a factor of 100, it appears to be a potential remedy for Solana’s existing challenges amidst the current altcoin surge.
If Solaxy effectively addresses the blockchain trilemma of scalability, security, and decentralization, demand for SOL could rise, potentially paving the way for SOL ETFs.
Additionally, developers on Solana would gain access to a new layer for application development during this bullish phase, allowing for innovative projects previously thought unattainable.