JPMorgan Projects Over $15 Billion in Inflows for XRP and Solana ETPs
JPMorgan estimates that exchange-traded products (ETPs) linked to XRP and Solana could attract over $15 billion in net inflows. This projection is based on adoption patterns observed in Bitcoin and Ethereum ETPs.
- Bitcoin ETPs collected $108 billion in assets within their first year, representing 6% of BTC's market cap.
- Ethereum ETPs achieved a 3% penetration rate, securing $12 billion in assets in six months.
- XRP could see inflows of $4 billion to $8 billion; Solana may gain $3 billion to $6 billion.
Photo: Matthew Sigel
CoinShares reports strong assets under management (AUM) for Solana and XRP ETPs with Solana products managing $1.6 billion and XRP-related ETPs handling $910 million. For 2024, net inflows indicate continued growth, with Solana and XRP ETPs receiving $438 million and $69 million, respectively.
SEC Rejects Solana ETFs: Ripple Faces Legal Hurdles
The US Securities and Exchange Commission (SEC) has rejected proposals for ETPs tied to Solana. Ripple Labs continues its legal battle regarding whether XRP is classified as a security.
- Analysts suggest that ETFs linked to Litecoin and Hedera are more likely to receive approval.
- Approval prospects for XRP or Solana-based ETFs appear low short-term but may improve with potential regulatory shifts.
Despite regulatory challenges, market sentiment remains strong. Following JPMorgan’s forecast, Solana's price increased by 5.40% to $188 with trading volume up over 150%. Similarly, XRP rose over 7% to $2.60, with a 50% increase in trading volume.
BlackRock's Dominance in Crypto ETFs
BlackRock leads the market with $37.6 billion in Bitcoin ETF inflows and $3.6 billion in Ethereum ETF inflows. Demand for regulated cryptocurrency products remains high.
- Bitcoin ETFs have accumulated $35.9 billion in cumulative inflows.
- Ethereum ETFs have gathered $2.4 billion.
- Recent outflows included $284.1 million from Bitcoin ETFs and $39.4 million from Ethereum ETFs.
Matthew Sigel noted that potential XRP and Solana ETFs could be transformative, reflecting growing interest in accessible and regulated crypto investments despite ongoing uncertainties over regulatory approvals.