XRP and Solana (SOL) are leading contenders for U.S. spot ETF approval, driven by their significant liquidity, with XRP emerging as the frontrunner to potentially receive approval before other tokens, according to Kaiko analysts.
Kaiko Indices data reveals that XRP and SOL feature the deepest 1% market depth on vetted exchanges, with XRP surpassing SOL in liquidity since late 2024, even doubling Cardano’s (ADA) liquidity.
Unlike Bitcoin, which achieved spot ETF approval following Grayscale’s legal win that exposed inconsistencies in the SEC’s treatment of futures and spot markets, XRP’s situation is different. XRP lacks a strong futures market, and much of its trading volume occurs offshore.
However, XRP’s market share in the U.S. has been steadily rising since the SEC’s 2021 lawsuit led to a wave of delistings, while SOL’s share has declined from a peak of 25–30% in 2022 to 16% today.
XRP’s momentum has been further strengthened by the recent launch of Teucrium’s 2x XRP ETF, which tracks European exchange-traded products (ETPs) and swap agreements to deliver double XRP’s daily returns. The product raked in over $5 million in volume on its debut day, marking it as Teucrium’s most successful launch.
Kaiko analysts noted that the improving dynamics in XRP’s underlying market, combined with the launch of the 2x XRP ETF, position it ahead of other assets in terms of potential approval. They also pointed out that while some tokens, such as Litecoin (LTC), share similarities with Bitcoin and may have a clear path to approval, XRP’s position remains strong.
Despite XRP’s robust fundamentals, the Deribit options market remains cautious, with a bearish skew in implied volatility for the April 18 expirations, indicating demand for downside protection.
The SEC has acknowledged multiple XRP spot ETF applications, with Grayscale’s filing facing a critical deadline on May 22.
