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3mo ago

JPMorgan Predicts Billions in Potential Inflows for Solana and XRP ETFs

Analysts suggest that Solana and XRP ETFs could attract significant investments if approved, but demand is expected to trail behind Bitcoin and Ethereum ETFs.

Overview

  • JPMorgan analysts estimate Solana ETFs could draw $3 to $6 billion, while XRP ETFs may attract $4 to $8 billion in assets if approved by the SEC.
  • These projected inflows would fall short of the success seen by Bitcoin ETFs, which amassed $50 billion in their first year, and Ethereum ETFs, which reached $12 billion in six months.
  • The SEC is expected to make preliminary decisions on Solana and XRP ETF applications by the end of January, with several asset managers, including Grayscale and VanEck, in the running.
  • Bitcoin ETFs currently hold $108 billion in assets, equivalent to 6% of Bitcoin's market cap, while Ethereum ETFs represent 3% of Ethereum's market cap.
  • The regulatory environment, including a pro-crypto administration, is seen as a key factor in shaping the future of crypto ETFs and broader cryptocurrency adoption.