Solana and XRP ETPs Could Draw in Billions: JPMorgan

According to a recent JPMorgan report, newly launched investment products focusing on Solana (SOL) and XRP could potentially outshine established exchange-traded funds (ETFs) that provide exposure to Bitcoin and Ethereum during their initial trading months.

According to Cointelegraph’s report, it emphasizes the unpredictable pattern of investor enthusiasm towards altcoins. This is due to the fact that the fluctuations in the crypto market are influenced by shifting investor opinions and novel coins that grab temporary focus for a brief period.

The report indicates that shallow tokens may struggle to maintain a profitable exchange-traded product, despite potentially drawing substantial investments during the initial months.

JPMorgan analysts believe that Solana-based exchange-traded products could potentially amass between $3 billion and $6 billion in assets, while XRP exchange-traded products might attract up to $8 billion. These forecasts are based on the assumption that the adoption rates will be similar to those of bitcoin and ether spot funds.

By the end of this month, it’s anticipated that the U.S. Securities and Exchange Commission (SEC) will make decisions on multiple Solana ETF proposals. Several investment managers, including VanEck, Grayscale, 21Shares, Canary Capital, and Bitwise, have submitted applications to launch these funds based on Solana.

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2025-01-14 20:35