XRP and solana (SOL) are top candidates for a spot ETF approval in the U.S., driven by their high liquidity

As the U.S. Securities and Exchange Commission (SEC) prepares to rule on spot exchange-traded funds (ETFs), analysts at digital asset market data provider Kaiko see both XRP and solana (SOL) as prime candidates for approval.

This is due to their high liquidity, which is crucial for ETF approval, according to a Monday report by Kaiko.

Data from Kaiko Indices shows that both tokens boast the deepest 1% market depth among vetted exchanges, a measure of how much an asset’s price moves with large trades.

In terms of 1% market depth, XRP has pulled ahead of SOL since late 2024, and both tokens have more than double the liquidity of Cardano’s ADA.

While bitcoin futures ETFs secured approval after Grayscale’s legal victory highlighted the SEC’s inconsistent stance on futures and spot markets, XRP’s case unfolds differently.

It lacks a robust futures market, and the majority of its trading volume occurs offshore.

However, XRP’s U.S. spot market share has climbed to its highest level since the SEC's 2021 lawsuit led to several crypto exchange delistings. Its share now stands at 34%, up from 14% in mid-2022.

Meanwhile, solana’s U.S. market share has slipped to 16% from a peak of 25–30% in 2022.

XRP’s momentum is furthered by the recent launch of a 2x XRP ETF by Teucrium, which tracks European exchange-traded products and swap agreements to deliver twice XRP’s daily total returns.

The ETF, launched last Thursday, saw an opening day volume of over $5 million, making it the company’s “most successful launch” and putting it in the spotlight.

It also tracks a basket of European ETPs and a total return swap agreement to provide twice the daily performance of the underlying token.

“This underlying market's improving dynamics and the launch of a 2x XRP ETF last week position XRP ahead of other assets when it comes to approval,” Kaiko analysts said.

“Although some tokens, such as LTC, which have very similar consensus mechanisms to BTC and share similarities to commodities, could also have a clear path to approval.”

Despite XRP’s strong fundamentals, Deribit’s options market reflects caution, with a bearish skew in the implied volatility smile for April 18 expirations, signaling greater demand for downside protection.

The SEC has acknowledged several XRP spot ETF applications, notably Grayscale’s filing, which faces a critical May 22 deadline.