JPMorgan analysts predict proposed ETFs focused on alternative cryptocurrencies like Solana and XRP could attract substantial investment.
Estimated Investment Volumes in Crypto ETFs
JPMorgan Chase & Co. analysts project that ETFs focusing on Solana and XRP could attract up to $14 billion within the first year following approval by the U.S. Securities and Exchange Commission (SEC). Solana ETFs are expected to draw between $3 billion and $6 billion over six to 12 months, while XRP-focused funds could gather $4 billion to $8 billion in the same period.
Experience of Previous Crypto ETFs
JPMorgan's projections are based on data from ETFs like Bitcoin and Ether. Bitcoin ETFs, introduced a year ago, manage $108 billion in assets, representing roughly 6% of Bitcoin’s market capitalization. Ether ETFs, launched six months ago, hold $12 billion, marking a penetration rate of 3% of the coin’s market value.
Regulatory Changes and Their Impact
Analysts note that administrative changes and regulatory uncertainty might slow ETF approvals beyond Bitcoin and Ether. However, the appointment of Paul Atkins as SEC Chair may accelerate the process. The introduction of a position focusing on AI and crypto indicates a push to accommodate emerging digital assets.
JPMorgan anticipates continued interest in launching crypto ETFs beyond Bitcoin and Ether. While regulatory progress may take time, analysts expect more applications in 2025.
