Following the debut of the first cryptocurrency-based exchange-traded funds (ETFs) in the United States, investors are now anticipating the next digital asset trading product.

When asked about the possibility of an XRP ( XRP ) ETF, Tim McCourt, the senior managing director at CME Group, said that the first major step had already been paved.

During a panel discussion at Ripple Swell 2024, McCourt said:

“We do have an XRP reference rate and a real-time index, which is a first step in building out this ecosystem […] We have upwards of 50 real-time prices and reference rates. That’s key for product providers like Bitwise because they can at least point to a fully regulated benchmark.”

McCourt’s comments come a week after the US Securities and Exchange Commission received its second application for an XRP ETF from Canary Capital, according to Bloomberg ETF analyst Eric Balchunas.

First major step taken toward XRP ETFs: CME director image 0

Canary XRP ETF filing with SEC. Source: Eric Balchunas

Canary was the second provider to file an application for an XRP ETF, following Bitwise Asset Management.

Related: First leveraged MicroStrategy ETF launches in US

ETFs speeding up crypto industry growth

The advent of the first spot Bitcoin ( BTC ) and Ether ( ETH ) ETFs has marked a turning point for the cryptocurrency industry, helping to legitimize the sector.

McCourt said the introduction of ETFs has significantly accelerated the growth of the industry:

“I don’t think it’s accidental that some of our largest open interest days and volume-based futures have happened after the advent of the ETFs because this ecosystem is really accelerating.”
First major step taken toward XRP ETFs: CME director image 1

Panel discussion. Ripple Swell. Source: Cointelegraph

Despite the enthusiasm around a potential XRP ETF, the token’s price has been struggling to gain momentum despite a wider crypto market rally.

Over the past year, the XRP price rose just over 8%, while Bitcoin’s price rose over 154% during the same period, according to Cointelegraph data.

First major step taken toward XRP ETFs: CME director image 2

XRP and BTC, 1-year chart. Source: Cointelegraph

ETFs can significantly bolster the price of the underlying cryptocurrency. For Bitcoin, spot ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.

Related: Trump leads Harris, but POTUS won’t matter for Bitcoin: BlackRock’s Fink

XRP or SOL ETF first?

Beyond XRP, the likelihood of a spot Solana ( SOL ) ETF has created significant excitement among cryptocurrency investors, who expect it to be a potential price catalyst.

Brazil’s first Solana ETF was approved on Aug. 7, setting a precedent for other global jurisdictions.

While a US-based spot Solana ETF remains uncertain, its unlikely prospect makes it a strong price catalyst in case of a potential approval, according to Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio.

Pinto told Cointelegraph:

“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”

Others, including Manthan Dave, the co-founder of Palisade, a Ripple-backed digital asset custody platform, expect a potential Solana ETF as soon as the end of 2024.

Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’