XRP and Solana (SOL) are gaining momentum as strong candidates for U.S. spot ETF approval, with XRP emerging as the front-runner due to its growing liquidity, according to a report by Kaiko analysts.
Kaiko Indices data reveals that both XRP and SOL have the deepest 1% market depth on vetted exchanges. However, XRP has surged past Solana since late 2024, now boasting more liquidity than Cardano’s (ADA), further solidifying its position as a leading contender.
While Bitcoin gained spot ETF approval following Grayscale’s legal victory, which highlighted the SEC’s inconsistencies between futures and spot market regulations, XRP’s situation differs. XRP lacks a strong futures market and its trading volume remains largely offshore.
Nevertheless, XRP’s U.S. market share has climbed to its highest point since the SEC’s 2021 lawsuit prompted delistings. In contrast, Solana’s U.S. share has slipped from a peak of 25–30% in 2022 to just 16% now.
XRP’s bullish momentum has been further supported by the recent launch of Teucrium’s 2x XRP ETF, which tracks European exchange-traded products (ETPs) and swap agreements to deliver twice the daily returns of XRP. The launch generated over $5 million in volume on its first day, marking a significant success for Teucrium.
Kaiko analysts noted that XRP’s strong market dynamics and the successful launch of the 2x XRP ETF place the token ahead of others in the race for U.S. spot ETF approval. Although other tokens like Litecoin (LTC) share similarities to Bitcoin, XRP’s fundamentals give it a leading edge.
Despite XRP’s favorable position, the Deribit options market shows some caution, with implied volatility for April 18 expirations skewed bearish, indicating demand for downside protection.
The SEC is currently evaluating several XRP spot ETF applications, with Grayscale’s filing facing a critical deadline on May 22.
