Spot release Bitcoin(Crypto: Bitcoin) January’s exchange-traded funds (ETFs) were a historic event. For good reason, ETFs are widely viewed as one of the primary catalysts behind Bitcoin’s triple-digit gains this year. Tens of billions of dollars have flowed into this Spot Bitcoin ETFsThis helped push the price of Bitcoin higher throughout the year.
But Bitcoin is no longer the only cryptocurrency with an instant ETF. Ethereum(Crypto: ETH) I joined the ETF party in July, and speculation is growing about which cryptocurrency could be next in 2025. The three currencies I’m looking at now are: Solana(encryption:sol), XRP(Crypto: XRP)and Cardano(encryption: ADA). If any of them receive immediate ETF approval in 2025, they could be off to the races.
My top choice is Solanawhich now ranks as the fifth largest cryptocurrency in the world, with a market capitalization of approximately $100 billion. Solana stock is up about 90% this year (as of Dec. 18), after posting a solid 900% return in 2023.
Some investors view Solana as the next Ethereum, which is why its price has been rising over the past two years. Just like Ethereum, Solana is a smart contract blockchain network. Therefore, anything Ethereum can do, Solana can also do. But Solana is faster, cheaper, and easier to use than Ethereum, which is why top investors like Cathie Wood of Ark Invest are bullish on Solana.
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Regarding Solana getting an ETF in 2025, it’s worth paying attention to what’s happening in the rest of the world. In Brazil, for example, regulators recently signed off on Solana spot ETFs. Eight different Solana exchange-traded products (ETPs) are currently traded within Europe. This is more than any other cryptocurrency, except Bitcoin and Ethereum.
Several prominent investment firms have already filed immediate applications for the Solana ETF in the US, so formal approval from the SEC could come in the first quarter of 2025, when the new Trump administration takes office.
My second choice is XRP, which has been absolutely on fire since the presidential election. XRP traded at around $0.50 on Election Day, reaching nearly $3 before the recent pullback. Over the course of the year, XRP has risen by a whopping 145%.
Like Solana, XRP is often cited as a potential spot ETF prospect, and several different investment firms have already applied for spot XRP ETFs in the US. As with Solana, XRP investment products are already being traded elsewhere in the world. In Europe, for example, there are three different XRP products traded on the exchange.
But there is more to XRP than just the ETF listing. More than any other cryptocurrency, XRP has benefited from the so-called Trump trade. This is essentially a bet that the pro-crypto optimism surrounding the Trump administration will lead to a rising tide for all cryptocurrencies.
This rising tide effect is particularly important for XRP, which has been embroiled in a regulatory controversy since December 2020. That’s when the Securities and Exchange Commission filed a lawsuit against Ripple, the company behind the XRP token. The growing consensus now is that the SEC will drop this lawsuit in 2025, freeing Ripple to return to business as usual. A pro-crypto environment in Washington, D.C., could eliminate any applications that might require SEC approval — such as an instant ETF application.
The latest to arrive is Cardano, whose value rose beyond the $1 barrier after the election. The price of Cardano is now up 55% for the year. This is the same as Ethereum but nowhere near Bitcoin (up 105%), which is why Cardano has been flying under the radar of many investors.
Like Ethereum, Cardano is a blockchain network for smart contracts. As with Solana, Cardano is a potential killer for Ethereum. Cardano currently has a market cap of $36 billion, ranking ninth among all cryptocurrencies. Cardano is a cryptocurrency with a track record dating back nearly a decade, and an extremely loyal ecosystem of blockchain developers, so it likely has long-term staying power.
The current thinking is that the value of Cardano could triple to a price of $3, if a new spot ETF is approved in 2025. This would match its all-time high three years ago, when Cardano traded for $3.10. dollar.
Of these three cryptocurrencies, I think Solana has the best chance of a significant rise in value in the coming year. It has less regulatory risk than XRP, and has more upside potential than Cardano. And based on Solana ETF approvals occurring elsewhere in the world, Solana appears to have the highest probability of gaining U.S. approval for a spot ETF product.
So, yes, Bitcoin is great. But there are plenty of other cryptocurrencies worth considering. The thesis for investing in ETFs is very strong, and being able to find the next cryptocurrency for an ETF could be one way to boost your investment performance in the coming year.
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Dominic Basulto He has positions in Bitcoin, Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has Disclosure policy.
