JPMorgan Projects $15 Billion Inflows for Solana and XRP ETPs

JPMorgan Projects $15 Billion Inflows for Solana and XRP ETPs

Crypto Finance
January 14, 2025 by newworldfinance
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JPMorgan Projects $15 Billion Inflows for Solana and XRP ETPs
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JPMorgan Predicts $15 Billion in Net Inflows for Solana and XRP ETPs

JPMorgan has projected that exchange-traded products (ETPs) for Solana (SOL) and XRP could attract over $15 billion in net inflows. This forecast stems from the impressive performance of Bitcoin (BTC) and Ethereum (ETH) ETPs relative to their market capitalization and inflow rates.

Bitcoin and Ethereum as Benchmarks

Matthew Sigel, head of digital assets research at VanEck, highlighted that Bitcoin ETPs accumulated $108 billion in assets during their first year, equating to 6% of BTC’s total market cap of $1.8 trillion. Similarly, Ethereum ETPs garnered $12 billion within six months, representing 3% of ETH’s $395 billion market cap. Applying these benchmarks, Solana could attract inflows between $3 billion and $6 billion, while XRP could see inflows ranging from $4 billion to $8 billion.

Current ETP Performance and Future Outlook

As of now, Solana ETPs hold $1.6 billion in assets under management (AUM), while XRP products manage $910 million. In 2024, these ETPs recorded net inflows of $438 million and $69 million, respectively. Despite the robust growth, the approval of exchange-traded funds (ETFs) for these assets could significantly amplify their AUM. However, such approvals face hurdles in the U.S. regulatory landscape.

Regulatory Challenges and Predictions

The U.S. Securities and Exchange Commission (SEC) has rejected Solana-tied ETFs, while Ripple Labs continues its legal battle over XRP’s classification as a security. Bloomberg ETF analysts James Seyffart and Eric Balchunas suggested that the incoming administration under President-elect Donald Trump might influence new approvals. Yet, Litecoin (LTC) and Hedera (HBAR) are considered more likely candidates for ETF approval. LTC’s ties to Bitcoin and HBAR’s non-security classification provide regulatory advantages.

While analysts predict a surge of new ETFs in the coming year, the prospects for XRP and Solana products remain uncertain. Their approval could transform the landscape but may take longer due to current regulatory scrutiny.