In keeping with a report from JPMorgan, the launch of a Ripple XRP and Solana SOL ETF may entice roughly $14 billion in inflows of their first 12 months. The projection relies on market penetration charges just like present Bitcoin and Ethereum ETFs, which at present signify 3-6% of their respective tokens’ market capitalizations.
JUST IN: JPMorgan predicts new proposed $XRP & $SOL ETFs could entice $14 billion value of inflows.
— Watcher.Guru (@WatcherGuru) January 14, 2025
Based mostly on Solana’s present market cap of $90.5 billion, ETF property may attain $5.2 billion at 6% penetration or $2.7 billion at 3% penetration, JPMorgan notes. “The important thing query right here stays the uncertainty of investor demand for added merchandise and whether or not new crypto ETP launches will matter,” JPMorgan analysts together with Kenneth Worthington wrote in a notice.
Solana’s SOL and Ripple’s XRP cryptocurrencies are two of the highest altcoins on the cryptocurrency market. Each had explosive 2024s when it comes to worth development, and can doubtless replicate that in 2025. Moreover, the launch of ETFs for the respective cryptocurrencies may also spark rallies for the cash. Whereas XRP’s ETF seems extra doubtless than SOL’s based on some specialists, each are actually high candidates for SEC approval.
XRP and SOL ETF Purposes Already Pending Approval
A number of asset managers within the US have already filed purposes for each XRP and SOL ETFs. Following the launch of Bitcoin ETFs in early 2024, Bitcoin’s worth exploded by almost 100%. The main crypto coin by market cap ended 2024 reaching $100,000 on a number of situations. This framework of ETF launch may additionally include XRP and Solana property, that are anticipated to achieve new all-time highs in 2025 already.
JPMorgan acknowledged that progress on ETFs past Bitcoin and Ether could also be gradual as a result of change of administration, particularly given the dearth of regulatory readability. Nonetheless, the analysts nonetheless “count on different ETP purposes to be submitted — and maybe authorized — in 2025.” With Gensler set to depart subsequent week as President-elect Donald Trump takes workplace, the SEC will welcome a brand new chairman, Paul Atkins, who’s considered as extra supportive of crypto and innovation. This variation in management, as soon as confirmed by the Senate, may open the door to a extra favorable regulatory setting for crypto ETFs.