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ZyCrypto 2025-01-14 17:26:18

Here’s Why This Banking Giant Thinks Investors Will Pour $8 Billion Into US Spot XRP ETFs

Analysts at America’s biggest bank, JPMorgan , have projected that spot market XRP exchange-traded funds (ETFs) might see inflows of up to $8 billion. According to a recent JPMorgan report, XRP ETPs may eclipse the performance of ETFs tied to the world’s second-largest token, Ethereum (ETH), in their first six months of trading. XRP ETFs May Attract $3-$8 Billion In New Investment According to an estimate by JPMorgan, exchange-traded funds for Ripple’s XRP could attract remarkable inflows ranging from $3 billion to $8 billion. The estimate is derived from the performance of Bitcoin and Ethereum exchange-traded funds that debuted in early 2024. ETF assets currently account for around 8% of Bitcoin’s total market capitalization, which currently hovers at $1.9 trillion. Notably, Ether ETFs have a much lower penetration rate of around 3%. As ZyCrypto reported , Ripple’s Monica Long believes XRP will be next in line for a spot ETF after the greenlighting of products that give traditional investors direct access to Bitcoin and Ethereum. Meanwhile, Ripple CEO Brad Garlinghouse has oftentimes said that XRP ETF approval is inevitable in the US. JPMorgan also expects a similar impressive performance from Solana-based ETFs. “When applying these so-called “adoption rates” to SOL and XRP, we see SOL attracting roughly $3 billion-$6 billion of net assets and XRP gathering $4 billion-$8 billion in net new assets,” the report reads. Lighter Regulations Anticipated More analysts and crypto commentators are betting on the approval of the first spot XRP and Solana exchange-traded funds (ETFs) with expectations of a more innovation-friendly regulatory environment in the US after President-elect Donald Trump’s swearing-in on January 20. A slew of companies, including VanEck, 21Shares, WisdomTree, Bitwise, Grayscale, and Canary Capital, have seized upon those expectations of an increasingly crypto-friendly tone in Washington by filing paperwork to introduce XRP and SOL ETFs on Wall Street. Will ETF Launch Propel XRP To All-Time High? The prediction comes on the heels of the first anniversary of the US spot Bitcoin ETFs, which pulled in a whopping $100 billion in total assets in 2024. The biggest of those novel BTC ETFs, BlackRock’s iShares Bitcoin Trust (IBIT), has become the most successful launch in the ETF industry’s 35-year history. That said, new altcoin-based ETFs could drive the underlying token to fresh lifetime highs. For Bitcoin, the ETFs accounted for roughly 73% of new investment when Bitcoin smashed the $50,000 threshold on Feb. 15, roughly four weeks after the spot BTC ETF went live on US exchanges on Jan. 11.

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