Banking giant JPMorgan has predicted that Solana and XRP ETFs could attract $14 billion in new investments in their first year if the Securities and Exchange Commission (SEC) gave the green light.
The prediction is based on market penetration rates similar to existing Bitcoin and Ethereum ETFs, which currently make up around 3-6% of their respective market capitalizations.
Next Wave Of Crypto ETFs
JPMorgan predicts Solana and XRP ETFs could attract $14 billion in investments in their first year. The banking giant estimates Solana ETFs would attract between $3 billion and $6 billion, while XRP ETFs could see inflows between $4 billion and $8 billion. Solana ETF applications are nearing the deadline for a preliminary decision before the end of January, days after Donald Trump’s inauguration.
“JUST IN: JPMorgan predicts new proposed $XRP & $SOL ETFs may attract $14 billion worth of inflows.”
Investors are betting on the approval of the first spot Solana and XRP ETFs, thanks to the expectations of a crypto and innovation-friendly administration after Trump’s inauguration. JPMorgan also predicts Solana and XRP ETPs could eclipse the performance of spot Ethereum ETFs in the first six months of trading. The report stated,
“When applying these so-called adoption rates to SOL and XRP, we see SOL attracting roughly $3 billion-$6 billion in net assets and XRP gathering $4 billion-$8 billion in net new assets.”
Mathew Sigel, head of digital assets research at VanEck, shared JPMorgan’s predictions on X, highlighting how fast the ETFs could grow.
“SOL & XRP ETPs Could Attract $3-8bn Each: JPM ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first 6 months since launch.”
Investor Demand Uncertain
While a potential Solana and XRP ETF has generated considerable investor interest, JPMorgan’s predictions are based on the adoption rates of Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have an adoption rate of 6%, while Ethereum ETFs reported an adoption rate of 3% during their first six months. However, altcoin demand is relatively unstable, making accurate prediction difficult. The report added,
“Outside of a few primary tokens (BTC, ETH, SOL), the episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time.”
SEC Deadline For Solana ETFs
Several asset managers, including Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital have submitted applications for a Solana ETF. The SEC is expected to make a preliminary decision on these applications by the end of January. Grayscale’s application faces a deadline of January 23, while other applications have a January 25 deadline. According to Alejo Pinto, founder of Solana Layer2 network Lumio, a Solana ETF could have a substantial impact on its price.
“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.