JPMorgan Projects $14 Billion Inflows for Proposed Crypto ETFs If Approved
JPMorgan Chase & Co. analysts project that new exchange-traded funds (ETFs) for alternative crypto assets could attract inflows of up to $14 billion if approved by the SEC.
Key Insights on Alternative Crypto ETFs
- Solana ETFs may draw $3 billion to $6 billion in six to twelve months post-approval.
- XRP funds could see inflows ranging from $4 billion to $8 billion in the same period.
- Current Bitcoin ETFs hold approximately $108 billion, equating to 6% of its market cap; Ethereum ETFs have accumulated $12 billion, representing 3% of its market value.
- Despite Bitcoin's dominance, interest in Solana and XRP suggests diversification in crypto investments.
- Analysts express uncertainty about demand for additional crypto products and their market impact.
Industry Growth Signals
- The SEC has received numerous applications for funds tracking cryptocurrencies like XRP, Solana, and Litecoin.
- Recent political changes, including Donald Trump's election and the appointment of pro-crypto SEC chair Paul Atkins, may influence industry dynamics.
- Progress on ETFs beyond Bitcoin and Ether could be slow due to regulatory uncertainties.
- Analysts predict more ETF applications may be submitted and potentially approved by 2025.
As of now, XRP is trading at $2.67 (+6%), while Solana is at $188 (+3%).