JPMorgan Predicts XRP and Solana ETFs Could Attract Inflows of $3B to $8B

According to a JP Morgan report, XRP and Solana ETFs may attract between $3 billion and $8 billion in inflows once approved.

A recent JP Morgan report has estimated that XRP and Solana ETFs could attract inflows ranging from $3 billion to $8 billion once approved. These estimates are derived by extrapolating the performance of Bitcoin and Ethereum ETFs.

According to the report, Bitcoin ETFs attained assets under management of $108 billion in the first year, which is roughly 6% of the total Bitcoin market cap. Following this, Ethereum ETFs garnered assets of $12 billion or about 3% of Ethereum’s market capitalization over six months.

Using these metrics for XRP and Solana, the bank has projected high inflows. For XRP, a 3% rate would attract $4.3 billion, raising its market cap to $150.8 billion from the current $146.5 billion. A 6% rate could bring in $8.4 billion to lift the cap to $154.9 billion. This increment could lead to XRP rising from $2.55 to $2.62 – $2.69, considering the current supply of 57.5 billion tokens.

As for Solana, with a market cap of $90.5 billion, it could attract $2.7 billion with 3% APY and $5.2 billion with 6% APY, taking its market cap to $93.2 billion and $95.7 billion, respectively. With a circulating supply of 484 million tokens, Solana could be priced anywhere from $192.5 to $197.7 in the next few weeks, depending on the market.

It's worth noting that the approval of XRP and Solana ETFs is still pending, with no green light yet from the U.S. SEC. However, recent developments indicate a positive regulatory climate, with SEC set to decide on XRP ETF applications by January 25, 2025.

Several top firms, including WisdomTree, 21Shares, and Bitwise, have submitted applications for these ETFs.

Interest in Solana ETFs is also growing. In June 2024, a major application was filed by VanEck for a Solana ETF. Grayscale has been attempting to convert its Solana Trust Fund into an ETF, with a decision expected by January 23, 2025.

As we振り返る to the impact of Bitcoin ETFs, which helped propel Bitcoin to over $100,000 in 2024, these new products hold the potential to increase market liquidity and accessibility.

The report concludes that the introduction of regulated investment products, such as ETFs, is a key factor in driving these market changes. This, in turn, helps stabilize trading conditions and facilitates price discovery for XRP and Solana, ultimately attracting greater inflows.

With the new leadership in 2025 and the growing institutional interest in digital assets, if approved, these ETFs can open up new investing opportunities for both institutional and retail buyers.