JPMorgan Forecasts Solana And XRP ETFs Could Draw Billions In Fresh Investment

The major banking institution JPMorgan has estimated that Solana and XRP ETFs could bring in $14 billion in new investments during their initial year if the Securities and Exchange Commission (SEC) approves them. 

This estimate is derived from market engagement rates akin to those of current Bitcoin and Ethereum ETFs, which represent approximately 3-6% of their respective market capitalizations. 

Emerging Crypto ETF Landscape 

JPMorgan anticipates that Solana and XRP ETFs might attract $14 billion in investments within their first year. The bank projects that Solana ETFs could pull in between $3 billion and $6 billion, whereas XRP ETFs might see inflows ranging from $4 billion to $8 billion. The deadline for preliminary decisions on Solana ETF applications is approaching, set before the end of January, shortly after Donald Trump’s inauguration. 

“JUST IN: JPMorgan predicts new proposed $XRP & $SOL ETFs may attract $14 billion worth of inflows.”

Investors are optimistic about the approval of the first spot Solana and XRP ETFs, spurred by the anticipation of a crypto-friendly administration following Trump’s inauguration. JPMorgan also forecasts that the performance of Solana and XRP ETPs could surpass that of spot Ethereum ETFs within their 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, who leads digital assets research at VanEck, echoed JPMorgan’s forecasts on X, emphasizing the rapid growth potential of these ETFs. 

“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.”

Uncertain Investor Interest 

Although the potential for Solana and XRP ETFs has sparked significant interest among investors, JPMorgan’s estimates rely on the adoption figures from Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have achieved an adoption rate of 6%, while Ethereum ETFs reported a 3% adoption rate in their first six months. However, the demand for altcoins tends to be quite volatile, complicating accurate predictions. 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.”

Solana ETF SEC Review Timeline 

Several asset management firms, including Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital, have filed applications for a Solana ETF. The SEC is anticipated to announce a preliminary decision on these applications by the end of January. Grayscale’s application has a deadline of January 23, while others are due by January 25. According to Alejo Pinto, the founder of the Solana Layer2 network Lumio, a Solana ETF could significantly influence 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.