JPMorgan Predicts Limited Inflows for Solana ETFs Amid SEC Approval
JPMorgan foresees limited investor interest in spot Solana (SOL) ETFs, even if approved soon.
Analysts estimate potential first-year inflows at $1.5 billion, significantly less than Ethereum's (ETH) ETF projections.
Potential lower inflows due to factors like decreased on-chain activity, prevalent memecoin trading, launch fatigue, and competition from diversified crypto indices.
Corporate treasuries might also reduce the demand for SOL spot ETFs.
Weak demand signals observed in CME Solana futures positioning.
The U.S. SEC will decide on around sixteen spot crypto ETF applications, including Solana, this October.
Approval is anticipated, supported by existing CME futures contracts and the recent launch of a Solana ETF by REX Osprey.
The premium to NAV on the Grayscale Solana Trust has dropped from 750% last year to nearly zero, similar to trends seen with Bitcoin (BTC) and Ethereum before their ETF launches.
