Banking giant JPMorgan suggests that emerging cryptocurrency-based exchange-traded products (ETPs) could draw substantial new investment if approved.

Investors are increasingly optimistic about the approval of the first spot Solana and spot XRP exchange-traded funds (ETFs), with expectations of a more innovation-friendly regulatory environment in the US following President-elect Donald Trump’s inauguration on Jan. 20.

In a Jan. 13 report shared with Cointelegraph, JPMorgan predicted that Solana and XRP ETPs might outperform spot Ether ETFs in their initial six months of trading.

The report stated, “When applying these so-called ‘adoption rates’ to SOL and XRP, we see SOL attracting roughly $3 billion-$6 billion of net assets and XRP gathering $4 billion-$8 billion in net new assets.”

This forecast comes shortly after the first anniversary of US spot Bitcoin ETFs, which nearly reached $110 billion in cumulative holdings as of Jan. 2.

For Bitcoin, ETFs accounted for approximately 75% of new investments when the cryptocurrency reclaimed the $50,000 level on Feb. 15, just a month after spot BTC ETFs were introduced on Jan. 11.

While the potential launch of SOL and XRP-based ETFs has sparked significant interest, JPMorgan’s projections are informed by the adoption rates of Bitcoin and Ethereum ETFs.

Bitcoin ETFs have achieved a 6% adoption rate, attracting 6% of Bitcoin’s total market capitalization, while Ethereum ETFs reached a 3% adoption rate within their first six months.

Despite this, altcoin demand is more volatile, making it challenging to forecast the performance of future crypto-based ETFs.

The report stated, “Outside of a few primary tokens (BTC, ETH, SOL), the episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time.”

It further noted, “We don’t see tokens with such limited depth successfully hosting an ETP.”

Major asset managers, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have submitted applications for a Solana ETF.

The US Securities and Exchange Commission is anticipated to issue preliminary decisions on these applications by the end of January, with Grayscale’s application deadline set for Jan. 23 and others expecting decisions by Jan. 25.

Alejo Pinto, founder of Solana layer-2 network Lumio, commented on the potential market impact of an ETF approval.

“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in,” he said.

Sources:

https://cointelegraph.com/news/solana-xrp-etfs-billion-dollar-investment-jpmorgan

https://cryptodaily.co.uk/2025/01/jpmorgan-says-solana-and-xrp-etfs-could-attract-billions-in-new-investment