XRP & Solana ETFs Will Underperform Bitcoin ETFs

JP Morgan researchers claimed in a report released on Monday that XRP ETFs could attract $3 to $6 billion in investment, while Solana products could attract between $4 and $8 billion. However, they stated that vehicles for top altcoins would still fall far short of Bitcoin exchange-traded products, or ETPs.

Several asset managers, including Bitwise, VanEck, and Grayscale, have submitted filings for cryptocurrency funds tracking XRP and Solana.

However, XRP ETFs could attract $3 to $6 billion in investment, while Solana products could attract between $4 and $8 billion, according to a report by JP Morgan researchers on Monday.

Despite this, they said that vehicles for top altcoins would still pale in comparison to Bitcoin exchange-traded products (ETPs).

“Given their altcoin status, we believe [Solana and XRP ETFs] will match, if not fall below, Ethereum ETP expectations and that Bitcoin remains the favored crypto token to trade and own both in spot and ETP form,” the report said.

Even if approved, Solana and XRP funds would manage a few billion dollars in assets, the researchers noted, adding that this is “orders of magnitude less than Bitcoin.”

BlackRock’s iShares Bitcoin Trust, the largest cryptocurrency investment vehicle, hit $50 billion in assets under management in its first year, and it would likely be impossible to match the success of the Bitcoin ETFs, which were introduced in January after receiving approval from the SEC to trade on stock exchanges. XRP and Solana are ranked third and sixth in market value, respectively, with ether and bitcoin in the top two spots.

Ethereum ETFs, which entered the market last year, have also performed significantly worse than their highly anticipated bitcoin counterparts.

“The episodic nature of the crypto market is largely driven by trendy new coins that may garner incremental attention for a limited time and shifting investor sentiment,” the JP Morgan analysts also said.