The launch of the place Bitcoin(CRYPTO: BTC) Exchange Traded Funds (ETFs) in January were a milestone. It is not without reason that ETFs are widely seen as one of the main catalysts behind Bitcoin’s triple-digit percentage gains this year. Tens of billions of dollars have flowed into these spot Bitcoin ETFs, and that has helped push Bitcoin’s price up all year long.
But Bitcoin is no longer the only cryptocurrency with a spot ETF. Ethereum(CRYPTO:ETH) joined the ETF party in July and speculation is mounting about which cryptocurrency could be next in 2025. The three on my radar now are: Solana(CRYPTO: SOL), XRP(CRYPTO:XRP)And Cardano(CRYPTO:ADA). If any of them get spot ETF approval in 2025, they could be off to the races.
My top pick is Solana, which is now the fifth largest cryptocurrency in the world, with a market cap of around $100 billion. Solana is up about 90% this year (as of December 18), after delivering a blistering 900% return in 2023.
Some investors consider Solana to be the next Ethereum, which is why its price has soared over the past two years. Like Ethereum, Solana is a smart contract blockchain network. So anything Ethereum can do, Solana can do too. But Solana is significantly faster, cheaper and easier to use than Ethereum, which is why top investors like Cathie Wood of Ark Invest are so bullish on Solana.
Image source: Getty Images.
When it comes to 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 spot Solana ETFs. And eight different Solana exchange traded products (ETPs) are currently trading within Europe. That’s more than for any other cryptocurrency with the exception of Bitcoin and Ethereum.
Several leading investment firms have already filed Spot Solana ETF applications in the US. Official approval from the Securities and Exchange Commission (SEC) could therefore come as early as 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 around $0.50 on Election Day and reached almost $3 before a recent pullback. For the year, XRP is up a hefty 145%.
Like Solana, XRP is often cited as a potential potential spot ETF, and several investment firms have already filed for spot XRP ETFs in the US. And like Solana, XRP investment products are already traded elsewhere in the world. For example, in Europe there are three different XRP ETPs.
But there’s more to XRP than just the ETF story. 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 cryptos.
This ripple effect is especially important for XRP, which has been embroiled in regulatory controversy since December 2020. Then the SEC 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 resume business as usual. And a pro-crypto environment in Washington, DC could provide the basis for any applications that require SEC approval, such as a spot ETF filing.
The latest is Cardano, which increased in value after the elections and broke the $1 barrier. Cardano is now up 55% this year. That’s the same as Ethereum, but nowhere near Bitcoin (up 105%). That’s why Cardano has flown under the radar of many investors.
Like Ethereum, Cardano is a smart contract blockchain network. And like Solana, Cardano is a potential Ethereum killer. Cardano currently has a market cap of $36 billion, which ranks 9th among all cryptocurrencies. Cardano is a cryptocurrency with a track record of almost a decade, and a very loyal ecosystem for blockchain developers, so it likely has long-term staying power.
The current thinking is that Cardano could triple in value to reach a price of $3, if a new spot ETF is approved in 2025. That would equal the all-time high set three years ago, when Cardano was trading at $3.10.
Of these three cryptocurrencies, I think Solana has the best chance to skyrocket in value next year. It has less regulatory risk than XRP and more upside potential than Cardano. And based on Solana ETF approvals elsewhere in the world, Solana appears to have the best chance of gaining US approval for a spot ETF product.
So yes, Bitcoin is great. But there are plenty of other cryptocurrencies worth considering. The ETF investment thesis is a very powerful one, and being able to find the next crypto to find a place in the ETF could be a way to improve your investment performance next year.
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Dominic Basulto 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 a disclosure policy.
Bitcoin Is Great, But Here Are 3 Altcoins Worth Considering in 2025 Originally published by The Motley Fool
