In a recent interview led by Kyle Chassé, Matt Hougan, Chief Investment Officer at Bitwise, and James Seyffart, an ETF analyst at Bloomberg, discussed which spot ETF might draw more investment inflows—XRP or Solana—if both were approved simultaneously. They agreed that XRP would likely see an initial surge in capital, while Solana might attract more long-term investments.
Seyffart based his insights on the performance of existing derivative products, pointing out that previous futures ETFs for Solana launched before those for XRP have received less capital. “The XRP versions have attracted more assets and inflows than the Solana version,” he noted. He cautioned that although derivative-based products are not as popular among investors as spot products, they serve as a reference point alongside the robust retail interest in XRP.
He also mentioned a “pseudo spot product” from Rex Osprey, which managed to gain exposure to spot Solana through unconventional methods, but it hasn't significantly changed his short-term outlook. Seyffart expressed, “In the near term, I would bet on XRP, but over the long term, Solana may attract more assets.” He highlighted XRP's widespread recognition, noting that many individuals unfamiliar with the cryptocurrency space tend to favor XRP, seeing it as a potential backend settlement system for banks. The ongoing discussions about XRP on platforms like TikTok and Reddit demonstrate its strong community engagement.
Hougan echoed Seyffart's analysis, agreeing that XRP would likely perform better initially. He emphasized that the enthusiasm of a dedicated minority, rather than overall sentiment, drives early ETF investments. “While the broader perception of Solana might be more favorable among crypto investors, the day-one buyers of the ETF are those who are passionate,” he explained. He recounted his experience at an XRP event in Las Vegas, where 1,200 attendees filled the venue, showcasing the strong support for XRP despite negative sentiment from a larger audience.
Hougan also indicated that Solana’s future growth would hinge on its evolving narrative, suggesting that a shift in the storyline surrounding the network could impact investment decisions. “If Solana is performing well, it would likely attract interest,” he stated. However, he maintained that XRP would likely lead in the initial months following approval.
Overall, the analysts' perspectives highlight a dual trajectory: an immediate influx of investments into XRP’s spot ETF driven by a highly engaged retail audience, followed by a possible transition where Solana, with greater institutional interest and a changing narrative, could eventually surpass XRP in total assets. As of the latest update, XRP was trading at $3.06.
