XRP, Dogecoin, and Solana Now Share Same ETF Perks as Bitcoin

As of January 1, 2026, XRP, Dogecoin, and Solana are now treated similarly to Bitcoin in regulatory frameworks, granting them the same exchange-traded fund (ETF) benefits. A new bill reclassified these tokens as non-ancillary assets, allowing them to be exempt from certain disclosure requirements when included in nationally listed ETFs. This development marks a shift in how these tokens are viewed in financial markets, offering more legitimacy and institutional investment potential.

The bill focuses on token classifications and their inclusion in exchange-traded products. Tokens like XRP, Dogecoin, and Solana—once considered ancillary—are now afforded the same favorable treatment as Bitcoin and Ethereum. The reclassification aims to reduce regulatory barriers and promote broader adoption of digital assets in mainstream finance.

Regulatory changes can significantly impact the market. For instance, recent news of WisdomTree withdrawing its spot XRP ETF application led to a 6% drop in XRP's price on January 6, 2026. Similarly, Dogecoin saw a 2% decline following the same news, despite ETF inflows showing continued investor interest. The withdrawal highlights the challenges associated with launching spot crypto ETFs and the influence of regulatory uncertainty on market sentiment.

Why Did This Happen?

The new bill reflects a compromise between traditional finance (TradFi) and decentralized finance (DeFi) sectors. A key provision in Section 601 aims to protect software developers from regulatory overreach, addressing concerns from securities trade associations like SIFMA. This compromise helps to balance the interests of both sectors and provides a clearer regulatory path for DeFi protocols.

The bill also seeks to level the playing field for digital assets. By granting tokens the same ETF privileges as Bitcoin, it encourages greater adoption in traditional financial products. This could enhance institutional capital flow into the crypto market, fostering further maturation of the industry.

How Did Markets React?

Market reactions have varied. After the bill's introduction, Dogecoin ETF inflows saw significant increases, with $19.12 million in net inflows on one day alone. However, the market also experienced volatility. For example, the withdrawal of WisdomTree's XRP ETF application led to a sharp decline in XRP's price, illustrating the sensitivity of the market to regulatory developments.

The derivatives market for Dogecoin also experienced a dramatic shift. Futures open interest for DOGE plummeted from nearly $6.0 billion to around $1.2 billion, signaling a withdrawal of leveraged positions. This shift raises concerns about potential volatility during future price movements, as the reduced leverage participation leads to thinner order books.

What Are Analysts Watching Next?

Analysts are closely monitoring regulatory developments, particularly the outcome of the SEC's lawsuit against Ripple Labs. A definitive ruling that XRP is not a security could remove the primary obstacle for a spot ETF. Until then, asset managers may adopt a cautious approach, waiting for clearer regulatory signals before committing resources to altcoin ETF applications.

Institutional investors are also tracking macroeconomic factors. A report noted that spot Bitcoin ETFs lost $681 million in the first week of 2026 due to shifting risk appetite and macroeconomic uncertainty. Analysts like Vincent Liu from Kronos Research point to Q1 rate cut expectations and geopolitical risks as key factors influencing investor behavior.

The regulatory environment for crypto ETFs is still evolving. While some ETFs have been approved, others, like WisdomTree's XRP ETF, have been withdrawn. The approval of spot Bitcoin ETFs could set a precedent that extends to other digital assets, including XRP, Dogecoin, and Solana. This regulatory clarity is essential for long-term market stability and investor confidence.

South Korea's decision to launch spot Bitcoin ETFs in 2026 is another key development. This move aligns with global trends and could further legitimize digital assets in traditional financial markets. As more countries adopt similar strategies, the global crypto market may see increased liquidity and broader adoption.

Regulatory progress is not without challenges. Anti-DeFi groups have launched campaigns urging lawmakers to exclude DeFi provisions from crypto market structure legislation, citing concerns over potential competition to traditional banking systems. These efforts could slow the passage of bills like the CLARITY Act, delaying regulatory clarity for the industry.

Despite these challenges, the introduction of the new bill and the approval of additional Dogecoin ETFs indicate that digital assets are gaining traction in traditional financial markets. The market response—marked by both inflows and volatility—demonstrates the evolving relationship between crypto and mainstream finance. As the year progresses, the outcome of ongoing regulatory discussions will be crucial in determining the future of crypto ETFs and their impact on the broader market.