VanEck and 21Shares filing for spot Solana exchange-traded funds (ETFs) might open the floodgates for more crypto ETFs in the US, according to a report by GSR.

The market maker noted that Solana had created a solid position among the crypto’s Big Three. However, it was only a matter of time before other digital assets like Cardano and XRP joined this space.

Are XRP and Cardano ETFs Next?

The GSR report noted two key factors that will determine the next spot crypto ETF: the level of decentralization and potential demand. 

“The level of decentralization could be key as to whether a digital asset may get an ETF,” the report said, adding that most public blockchains become decentralized over time. 

GSR gave an example of the Cardano blockchain. The blockchain is set to become more decentralized with the upcoming upgrade known as the Voltaire era, which will decentralize governance on the Cardano network.

Currently, the Cardano decentralization score is negative, per the GSR report. However, with Charles Hoskinson promising an upgrade later this month, this score will likely increase, raising the chances for a spot Cardano ETF approval. 

Demand is another factor affecting the approval of the next spot crypto ETF. XRP ranks fourth in demand analysis after Ether, Solana, and NEAR.

A spot XRP ETF is even more likely because the issuers will most likely file for ETF products that they believe will record high demand. XRP is one of the most popular digital assets in the cryptocurrency industry, which could appeal to issuers.

“While crypto-native issuers may file for a good number of spot digital asset ETFs, we believe larger issuers are more likely to focus on just one or two with both sufficient decentralization and high potential demand determining which digital assets are next,” GSR said.

Shifting US Regulatory Framework Will Pave the Way for More ETFs 

In its report, GSR also mentioned that the US regulatory framework was changing. While some believe that another spot altcoin ETF will not be listed in the US market because of the lack of a futures market, the market maker believes the US regulatory framework is about to change.

It noted that former US President Donald Trump has emerged as a strong backer of the cryptocurrency industry. Additionally, Democrats are also loosening their stance against digital assets in a bid to attract crypto votes.

If the next US administration picks a liberal Commissioner for the US Securities and Exchange Commission (SEC), it could pave the way for the launch of multiple spot digital ETFs.

Bloomberg ETF analyst Eric Balchunas agreed with this, saying a crypto-friendly SEC Commissioner will bring more spot crypto ETFs to the US.