- JPMorgan predicts Solana and XRP ETFs could attract $3–8 billion in net assets within six months of launch.
- Altcoin ETF adoption is uncertain due to fluctuating investor sentiment, unlike BTC and ETH’s steady adoption rates.
- The SEC will decide on Solana ETF applications by late January, with approval potentially boosting Solana’s price significantly.
The potential approval of exchange-traded products (ETPs) tied to Solana (SOL) and XRP has sparked optimism among investors, with JPMorgan projecting significant inflows if the products launch. The banking giant anticipates that these ETFs could outperform existing crypto ETFs, particularly amid expectations of a more pro-innovation regulatory environment after Donald Trump’s inauguration on January 20.
ETPs Could Drive Billions into SOL and XRP
In a recent report shared with Cointelegraph, JPMorgan estimates that Solana ETFs could attract between $3 billion to $6 billion in net assets, while XRP ETFs could draw in $4 billion to $8 billion within their first six months. These predictions are based on the adoption rates of Bitcoin (BTC) and Ether (ETH) ETFs, which saw steady inflows during their initial launch periods.
For context, Bitcoin ETFs reached nearly $110 billion in cumulative holdings by their first anniversary, accounting for 75% of new investment flows when BTC hit $50,000 shortly after the launch. A similar trajectory for SOL and XRP could push these altcoins to new all-time highs, potentially reshaping their market dynamics.
Altcoin ETF Adoption Faces Challenges
Despite the promising outlook, JPMorgan warns that predicting adoption for altcoin ETFs like SOL and XRP is more complex. While Bitcoin ETFs boast a 6% adoption rate and Ether ETFs reached 3% in their first six months, altcoin demand tends to be less predictable due to fluctuating investor sentiment and the crypto market’s episodic trends.
The report highlights that beyond BTC, ETH, and a few other established tokens, altcoins often lack the depth needed to sustain robust ETF demand. “We don’t see tokens with such limited depth successfully hosting an ETP,” JPMorgan cautioned.
Solana ETFs Near SEC Decision
Several prominent asset managers, including Grayscale, VanEck, and 21Shares, have filed applications for Solana ETFs, with the SEC’s initial rulings expected by late January. Grayscale’s application faces a key deadline on January 23, with others likely to receive decisions by January 25.
Alejo Pinto, founder of Solana Layer 2 network Lumio, believes that ETF approval could significantly boost Solana’s price. “It’s still uncertain, but an ETF approval would have a positive impact since the market hasn’t priced in the low probability of this happening yet,” Pinto explained.
Final Thoughts
As the SEC’s deadlines approach, the potential launch of Solana and XRP ETFs could mark a pivotal moment for altcoin markets. While challenges remain, the prospect of billions in inflows and new all-time highs is fueling optimism among investors. If approved, these ETFs could signal a new chapter for Solana, XRP, and the broader cryptocurrency ecosystem.
