JPMorgan Says Solana And XRP ETFs Could Attract Billions In New Investment

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According to predictions made by banking titan JPMorgan, Solana and XRP exchange-traded funds (ETFs) might garner approximately $14 billion in fresh investments within their debut year, should the Securities and Exchange Commission (SEC) grant approval.

The forecast assumes a market share akin to presently held by Bitcoin and Ethereum ETFs, accounting for approximately 3-6% of each cryptocurrency’s total value.

Next Wave Of Crypto ETFs 

JPMorgan anticipates that Solana and Ripple (XRP) Exchange-Traded Funds (ETFs) could potentially draw an estimated $14 billion in investments within their initial year. The financial titan projects Solana ETFs might pull in investment ranging from $3 billion to $6 billion, while XRP ETFs may witness investments between $4 billion and $8 billion. Applications for Solana ETFs are approaching the cut-off date for a preliminary decision by the end of January, only days after Donald Trump’s inauguration.

breaking news: According to JPMorgan’s forecast, potential new ETFs for XRP and SOL could draw in approximately $14 billion in investments.

Investors are optimistic about the possible approval of the initial exchange-traded funds (ETFs) for Solana and Ripple (XRP), due to hopes that a new administration following Trump’s inauguration will be supportive of cryptocurrencies and innovation. Moreover, JPMorgan anticipates that these Solana and XRP ETFs could surpass the performance of Ethereum ETFs within the first half of their trading period, according to a recent report.

By using the termed ‘adoption rates’ for SOL and XRP, we observe that SOL might bring in approximately $3 billion to $6 billion in total assets, while XRP could potentially collect around $4 billion to $8 billion in fresh assets.

Matthew Sigel, who leads digital asset research at VanEck, emphasized JPMorgan’s projections regarding X, underscoring the potential rapid expansion rate of Exchange-Traded Funds (ETFs).

The potential for SOL and XRP ETPs could draw in investments between $3 billion to $8 billion each, similar to how JPMorgan’s ETP assets ($108 billion) represent approximately 6% of the total Bitcoin market cap ($1.87 trillion) following a year of trading. Similarly, Ether ETP assets ($12 billion) account for about 3% of the total Ethereum market cap ($395 billion) within the first six months since their launch.

Investor Demand Uncertain 

In the financial world, there’s been much buzz about possible Solana and Ripple ETFs. Yet, JPMorgan’s forecasts are primarily based on the success rates of Bitcoin and Ethereum ETFs. For instance, Bitcoin ETFs have seen a 6% adoption rate during their initial six months, while Ethereum ETFs reported a 3% adoption rate in the same period. However, due to the volatile nature of altcoins, making precise predictions can be challenging. The report also noted that…

Beyond major currencies like Bitcoin, Ethereum, and Solana, the unpredictable behavior of the cryptocurrency market is influenced significantly by fluctuating investor emotions and fashionable new coins that attract temporary interest.

SEC Deadline For Solana ETFs 

Multiple investment firms such as Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital have filed requests for a Solana Exchange-Traded Fund (ETF). The Securities and Exchange Commission (SEC) is projected to announce their initial decisions on these proposals by the end of January. Specifically, Grayscale’s application needs to be reviewed by January 23, while other applications are due for consideration by January 25. Alejo Pinto, founder of Solana Layer2 network Lumio, suggests that a Solana ETF could significantly influence the asset’s price.

If the U.S. approval for an ETF remains unclear, a potential upside for Solana could occur due to the low likelihood of it happening and the fact that this possibility may not be fully reflected in its current price.

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2025-01-15 16:08