XRP’s SEC resolution, Solana’s ETF boom: What's next for institutional adoption?

The cryptocurrency market is buzzing with excitement as two major developments shake up investor sentiment. First, the U.S. Securities and Exchange Commission (SEC) has officially dropped its long-running lawsuit against Ripple, sending XRP soaring. 

Second, Volatility Shares is rolling out the first-ever Solana futures ETFs, potentially unlocking a new wave of institutional investment. These moves could be a game-changer, setting the stage for a friendlier regulatory environment and broader market participation.

XRP soars as SEC waves the white flag

Ripple’s cryptocurrency, XRP, jumped 15% after the SEC announced it was no longer pursuing its appeal against the company. The legal battle, which kicked off in 2020, centered around whether XRP was an unregistered security. A partial victory in 2023 confirmed that XRP isn’t a security when traded on retail exchanges, but some regulatory question marks remained.

Ripple CEO Brad Garlinghouse didn’t hold back in his reaction, calling the SEC’s approach a “broken system” and emphasizing that this fight was about more than just Ripple. His message? Crypto deserves fair treatment. And it looks like regulators might finally be listening.

Beyond XRP, the SEC has been hitting the brakes on crypto crackdowns. It recently closed investigations into Coinbase, Robinhood, Uniswap, Gemini, and Consensys without taking further action. The agency also dialed down its crypto enforcement unit and even stated that meme coins aren’t securities. Taken together, these moves suggest regulators might be shifting gears-potentially clearing the path for a more favorable crypto landscape.

Solana futures ETFs: A big step toward institutional adoption

In another milestone moment, Volatility Shares is launching two futures-based Solana ETFs-the first of their kind in the U.S. The Volatility Shares Solana ETF (SOLZ) will track Solana futures, while the Volatility Shares 2X Solana ETF (SOLT) will offer leveraged exposure. With Nasdaq listings and expense ratios of 0.95% and 1.85%, these funds could be a major gateway for institutional investors looking to tap into Solana’s ecosystem- and data shows demand is growing.

This follows the same playbook used for Bitcoin and Ethereum ETFs-first, futures-based products, then (hopefully) spot ETFs. Analysts at Bloomberg Intelligence estimate there’s a 75% chance we’ll see a spot Solana ETF approved this year. Heavy hitters like Franklin Templeton, Grayscale, and VanEck are already in the race, filing applications in anticipation of a green light.

Solana (SOL) isn’t just watching from the sidelines-it’s riding this wave of momentum. The token has climbed nearly 8% in 24 hours, hitting $135 before a slight retreat.

 Solana has been gaining traction thanks to its low transaction fees and thriving ecosystem, bouncing back from the turbulence following the FTX collapse in 2022.

The big question now: Will Solana’s rally hold strong post-ETF launch, or will we see some short-term profit-taking? Either way, traders believe the introduction of these ETFs adds another layer of legitimacy, increasing liquidity and paving the way for long-term stability.

What’s next for crypto regulation and institutional adoption?

The SEC’s recent moves suggest a potential shift toward a more open stance on digital assets. According to analysts, if this trend continues, we could see:

•  More spot ETFs for assets like Solana, Cardano, and even XRP 
•  Greater institutional participation, bringing fresh capital into crypto markets 
•  A boost in bullish sentiment as regulatory clarity improves

With XRP gaining some long-awaited regulatory clarity and Solana stepping into the ETF arena, crypto could be on the verge of a new era. While there are still hurdles ahead, legal wins and institutional-grade financial products are bringing digital assets closer to mainstream finance.

Technical insight: Key levels to watch

At the time of writing, XRP is showing some bullish bias after a period of consolidation. Prices touching the upper bollinger band hint at overbought conditions though. Key levels to watch on the upside will be $2.5915 and $2.9515. On the downside, $2.2891 and $2.0120.

Solana is also showing some bullish bias after the ETF news. However, prices remain below the moving average, hinting at the larger trend still being bearish. Adding to the bearish narrative is prices touching the upper bollinger band- signalling overbought conditions. Key levels to watch on the upside will be $150.00 and $177.14 and on the downside, $120.00 and $112.07.

You can get involved and speculate on the price of these two incredible assets with a Deriv MT5 account or a Deriv X account.