Solana and XRP ETFs could attract $14 Billion in first year
Clearing the clouds over ETFs
While JPMorgan Managing Director Nikolaos Panigirtzoglou has previously expressed skepticism about the short-term approval of ETFs based on Solana, XRP, and other cryptocurrencies beyond Bitcoin and Ethereum, the inauguration of Trump and the change in leadership at the Securities and Exchange Commission (SEC) increase the likelihood of such approvals.
According to a new JPMorgan forecast, Solana and XRP-based ETFs could attract up to $14 billion within the first 12 months after approval.
The projection, which is shared by VanEck’s Head of Digital Asset Research Matthew Sigel, is based on market penetration rates similar to those of existing Bitcoin and Ethereum ETFs, currently ranging between 3–6% of their market capitalization.
Based on Solana's current market capitalization of $90.5 billion, ETF assets could reach $5.2 billion at a 6% penetration rate or $2.7 billion at 3%, notes JPMorgan.For XRP, with a market capitalization of $146.5 billion, potential ETF assets could amount to $4.3 billion at a 3% penetration rate and $8.4 billion at 6%.
Clearing the clouds over ETFs
Following SEC approval of spot Bitcoin and Ethereum ETFs, the outlook for ETFs tied to other crypto assets has been bleak, as SEC Chairman Gary Gensler argued that many altcoins qualify as securities.
However, with Gensler stepping down next week and the new SEC Chairman, Paul Atkins, taking office, the regulatory environment for crypto ETFs may become more favorable.
In this context, Nate Geraci, President of The ETF Store, predicts the launch of at least 50 new exchange-traded products in 2025, including those linked to Solana.
The head of one of the world's largest banks, JPMorgan, Jamie Dimon, remains critical of Bitcoin despite the growing popularity of the leading digital asset among institutional investors.
