JP Morgan Analysts Predict Solana and XRP ETFs Will Attract Billions in Investments, but Unlikely to Replicate Bitcoin's Success

The launch of Bitcoin ETFs last year set a new benchmark for crypto investment vehicles, amassing $50 billion in assets within a year.

The launch of Bitcoin exchange-traded funds (ETFs) last year marked a significant milestone for crypto investment vehicles, quickly amassing $50 billion in assets within a year.

While this success has prompted speculation about the potential for Solana and XRP ETFs, analysts at JP Morgan anticipate that these funds will not replicate Bitcoin’s record-breaking performance.

In a report published Monday, JP Morgan analysts estimated that XRP ETFs could attract $3 to $6 billion in investment, while Solana ETFs might draw $4 to $8 billion.

However, the report also highlighted that altcoin ETFs are unlikely to match the scale of Bitcoin or Ethereum exchange-traded products (ETPs).

“Bitcoin remains the favored crypto token to trade and own, both in spot and ETP form,” the analysts noted.

XRP and Solana are currently ranked as the third and sixth largest cryptocurrencies by market capitalization, respectively, trailing Bitcoin and Ethereum.

Their inclusion in ETFs signals growing institutional interest in these altcoins, but these funds are likely to remain smaller than their Bitcoin and Ethereum counterparts.

The report also noted the “episodic nature” of the crypto market, which is often driven by fluctuating investor sentiment and trends surrounding new coins or technologies.

Several asset managers, including Grayscale, VanEck, and Bitwise, have filed paperwork for XRP and Solana ETFs. Grayscale, which previously converted its Bitcoin and Ethereum trusts into ETFs, has proposed a similar move for its Digital Large Cap Fund, which includes Solana, XRP, and other major cryptocurrencies.

Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust, have set a high bar for altcoin funds.

Even Ethereum ETFs, which were launched shortly after Bitcoin ETFs, have struggled to achieve the same level of inflows.

While Solana and XRP ETFs could collectively manage billions in assets, their performance will likely depend on market sentiment and the broader adoption of altcoin investment products.