XRP vs. Solana: The ETF Race

CRYPTO
XRP vs. Solana: The ETF Race

The race for the next spot crypto ETF is heating up, with XRP and Solana (SOL) leading the charge after Bitcoin and Ethereum secured ETF approvals. Both cryptocurrencies have strong cases for institutional adoption, but face unique regulatory challenges that could determine which asset wins approval first.

Solana has gained momentum due to its high-speed blockchain, institutional backing, and network growth. The SEC’s acknowledgment of Grayscale’s Solana Trust ETF application has set an October 2024 deadline, increasing expectations for approval. However, Solana still faces regulatory uncertainty, as the SEC classifies SOL as a security, which could delay approval until 2026.

XRP, on the other hand, has a legal advantage after a 2023 court ruling determined that XRP is not inherently a security. This gives it a regulatory edge over Solana, increasing its chances of an earlier ETF approval. However, concerns over Ripple’s influence over XRP could slow the process.

Prediction markets favor Solana (85%) over XRP (80%) for a 2025 ETF approval, but XRP has better odds for 2024. Meanwhile, Litecoin (LTC) is emerging as a dark horse contender. With growing institutional interest and shifting U.S. regulations, the next crypto ETF could arrive sooner than expected.

FINANCE
Trump Announces 25% Tariffs on Imports

President Donald Trump announced that the U.S. will impose 25% tariffs on all steel and aluminum imports, including those from Canada and Mexico, with additional import duties to follow later in the week. Speaking aboard Air Force One, Trump confirmed that aluminum would also be affected by the tariffs.

He also reiterated plans for “reciprocal tariffs”, targeting countries that impose duties on U.S. goods. “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” he said.

Trump has used tariffs as leverage in negotiations over immigration, trade policy, and revenue generation. His decision sparked market concerns, causing stock prices to drop amid rising inflation fears.

While Trump previously delayed tariffs on small package imports from Shein and Temu, he indicated they will be imposed once customs can enforce them. No further details on the timeline for steel and aluminum tariffs were provided.

FINANCE
Trump Taps Musk to Reform Pentagon

President Donald Trump signaled that Elon Musk and his Department of Government Efficiency (DOGE) will take on the Pentagon, following efforts to streamline federal agencies like USAID and the General Services Administration. In a Super Bowl interview, Trump told Fox News that after reviewing the Education Department, the Defense Department’s $850 billion budget would be next.

Trump’s National Security Adviser Mike Waltz echoed concerns about cost overruns and inefficiencies, highlighting long procurement times and wasteful spending. Former Navy Secretary Richard Danzig pointed to Musk’s ability to apply technology for innovation, arguing that the Pentagon’s outdated procurement systems need reform.

Musk has already criticized the F-35 program, favoring AI-powered drones over traditional fighter jets. Defense startups like Anduril and AI-driven firms like Palantir Technologies are expected to benefit from these changes. With AI and automation poised to reshape defense strategy, Musk’s role in military transformation could be a defining shift in U.S. defense policy.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.