JPMorgan Chase has projected that exchange-traded funds (ETFs) for Solana (SOL) and XRP could attract substantial investments, potentially reaching up to $14 billion. The bank estimates that Solana ETFs might draw between $3 billion and $6 billion, while XRP ETFs could garner between $4 billion and $8 billion within the first six to twelve months of trading.
This optimistic outlook is based on the performance of Bitcoin and Ethereum ETFs, which have seen significant adoption rates. Bitcoin ETFs have achieved a 6% adoption rate, attracting about 6% of Bitcoin’s total market capitalization, while Ether ETFs have seen a 3% adoption rate during their first six months. JPMorgan applies these adoption rates to Solana and XRP, anticipating similar success.
However, the bank acknowledges that the demand for altcoin ETFs is less predictable due to varying investor sentiment and the episodic nature of the crypto market. The success of such ETFs will depend on sustained investor interest and the broader market environment.
The U.S. Securities and Exchange Commission (SEC) is expected to make preliminary decisions on Solana ETF applications by the end of January 2025. Major asset managers, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have submitted applications for a Solana ETF. The outcome of these decisions could significantly influence the future of cryptocurrency investment products.
