In 2025, Bitcoin remains an excellent investment option, but these 3 alternative digital currencies also show promise:
The introduction of Bitcoin (BTC 1.53%) ETFs in January was a significant milestone. These ETFs are widely regarded as one of the major drivers behind Bitcoin's significant price increases this year. A substantial amount of money, around tens of billions, has been poured into these Bitcoin ETFs, which has undeniably boosted Bitcoin's price throughout the year.
However, Bitcoin isn't the only cryptocurrency with an ETF. Ethereum (ETH 1.18%) entered the ETF sphere in July, and there's growing speculation about which cryptocurrency could be next in 2025. Three cryptocurrencies that have caught my attention are Solana (SOL 4.50%), XRP (XRP 12.56%), and Cardano (ADA 9.64%). If any of them receive ETF approval in 2025, they could be poised for a meteoric rise.
Solana
My top pick is Solana, currently ranked fifth among cryptocurrencies with a market cap of around $100 billion. Solana has experienced a robust increase of approximately 90% this year (as of Dec. 18), following a remarkable 900% rise in 2023.
Many investors view Solana as the potential successor to Ethereum, which is why its price has surged over the past two years. Like Ethereum, Solana is a smart contract blockchain network. However, Solana is faster, less expensive, and more user-friendly than Ethereum, attracting the favorable attention of top investors such as Cathie Wood of Ark Invest.
Regarding a potential Solana ETF in 2025, it's essential to monitor developments in other parts of the world. For instance, Brazil has recently approved spot Solana ETFs. Furthermore, eight Solana exchange-traded products (ETPs) are currently available within Europe, surpassing those of any other cryptocurrency, excluding Bitcoin and Ethereum.
Several prominent U.S.-based investment firms have already submitted spot Solana ETF applications. Approval from the Securities and Exchange Commission (SEC) could potentially materialize as early as the first quarter of 2025, coinciding with the arrival of the new Trump administration.
XRP
My second pick is XRP, which has been red-hot since the presidential election. XRP was trading around $0.50 on election day, with an impressive gain of nearly $3 after a recent dip. For the year, XRP has achieved a noteworthy 145% increase.
Like Solana, XRP is frequently mentioned as a potential ETF candidate, and several U.S. investment firms have already applied for spot XRP ETFs. Additionally, XRP investment products are already available in regions such as Europe.
But XRP has more than just the ETF narrative going for it. It has significantly benefited from the so-called Trump trade, implying that the pro-crypto optimism surrounding the Trump administration could drive up cryptocurrency values.
This rising-tide effect is particularly meaningful for XRP, given its ongoing regulatory controversy that began in December 2020. The SEC filed a lawsuit against Ripple, the company behind the XRP token. It's becoming increasingly likely that the SEC will abandon this lawsuit in 2025, allowing Ripple to resume its normal operations. In addition, a pro-crypto environment in Washington, DC, could expedite any applications requiring SEC approval, such as a spot ETF application.
Cardano
Lastly, my focus turns to Cardano, which surged past the $1 mark following the election to achieve a 55% increase for the year. This performance is equal to Ethereum but trails behind Bitcoin's 105% gain, making Cardano less prominent in some investors' eyes.
Like Ethereum and Solana, Cardano is a smart contract blockchain network. Also similar to Solana, Cardano is seen as a potential Ethereum rival. Cardano has a market cap of approximately $36 billion, ranking it ninth among cryptocurrencies. Its long and established history in the blockchain space, coupled with a dedicated developer ecosystem, suggests it has resilience for the long term.
Current predictions suggest that Cardano could triple in value to reach a price of $3, should a new spot ETF be approved in 2025. This would match its all-time high from three years ago, when Cardano traded for $3.10.
Solana, XRP, or Cardano?
Of these three cryptocurrencies, I believe Solana offers the best opportunity for substantial price growth in the coming year. It has less regulatory risk than XRP and boasts greater potential than Cardano. Furthermore, based on Solana's ETF approvals in various countries, Solana seems to have the greatest possibility of receiving U.S. approval for a spot ETF product.
Therefore, although Bitcoin is certainly noteworthy, there are numerous other compelling cryptocurrencies worth considering. The ETF investment thesis can significantly enhance your investment returns, and discovering the next cryptocurrency to receive a spot ETF could be a viable way to boost your performance in 2025.
Investing in Bitcoin ETFs has led to significant price increases this year, with a substantial amount of money poured into these products. If Solana, XRP, or Cardano receive ETF approval in 2025, they could be poised for a meteoric rise, similar to Bitcoin's trajectory following its ETF introduction.
