The launch of spot Bitcoin exchange-traded funds (ETFs) in January marked a significant turning point. These ETFs have become catalysts for Bitcoin’s impressive triple-digit gains this year, attracting tens of billions in investments and helping to elevate Bitcoin’s price throughout the year.
With Bitcoin establishing a precedent, others are following suit, and Ethereum stepped onto the ETF stage in July. Speculation is rife about which cryptocurrency will join the ranks of Bitcoin and Ethereum in 2025, and I have three contenders that deserve your attention: Solana, XRP, and Cardano. If any of them secure ETF approval in 2025, they could experience explosive growth.
Solana is my top pick, currently the fifth-largest cryptocurrency with a market cap around $100 billion. This year alone, it’s seen a jump of about 90% after an astonishing 900% gain in 2023. Many investors view Solana as a strong rival to Ethereum due to its smart contract capabilities. Yet, Solana stands out because it offers faster transactions, lower costs, and greater usability, winning over big-name investors such as Cathie Wood from Ark Invest.
Looking ahead to 2025, it’s worth noting global developments regarding Solana ETFs. Brazil recently approved spot Solana ETF transactions, while Europe boasts eight Solana exchange-traded products (ETPs), the most after Bitcoin and Ethereum. Several investment firms have submitted spot Solana ETF applications in the U.S., so we may see SEC approval as early as the first quarter of 2025 with a new administration at the helm.
Next up is XRP, which has gained high visibility since the presidential election. Having started around $0.50 on Election Day, it surged to nearly $3 before experiencing a pullback, amassing a remarkable 145% increase this year. XRP is also in the spotlight as a potential candidate for spot ETFs, with multiple firms pushing for applications in the U.S. and three XRP ETPs already trading in Europe.
However, XRP has an edge beyond just ETF excitement; it’s been riding a wave of optimism linked to the Trump administration’s pro-crypto sentiment. This momentum is particularly pivotal for XRP, which has faced regulatory challenges since the SEC filed a lawsuit against Ripple, the company behind it, back in December 2020. There is growing belief that the SEC may drop this lawsuit in 2025, enabling Ripple to resume normal operations. A favorable crypto climate in D.C. could also pave the way for any applications needing SEC approval, such as those for spot ETFs.
Lastly, let’s talk about Cardano. After the election, its value surged past the $1 mark, bringing its year-to-date gains to 55%. While Cardano is on par with Ethereum in terms of smart contract functionality, it hasn’t captured as much attention as its bigger siblings. With a current market cap of $36 billion, it ranks ninth among all cryptocurrencies. Its longevity—dating back almost a decade—and its devoted developer community suggest that it has potential for sustained viability.
Current projections indicate that if a new spot ETF is approved in 2025, Cardano could triple its value, reaching a price point of $3, aligning closely with its all-time high of $3.10 achieved three years ago.
So, which one should you consider? Out of Solana, XRP, and Cardano, Solana appears primed for the most significant surge. It has lower regulatory risks compared to XRP and more room for growth than Cardano. Given the trends in global ETF approvals, Solana seems likely to secure U.S. approval for a spot ETF product.
While Bitcoin holds its own, exploring other cryptocurrencies can be equally rewarding. The prospect of ETF applications presents a compelling investment opportunity, and identifying the next cryptocurrency to achieve this feat could significantly enhance your portfolio come next year.
