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CryptoIntelligence 2025-01-16 08:34:00

JPMorgan: Solana and XRP ETPs Could Result in Significant Investment

Cryptocurrency-based exchange-traded products (ETPs) could attract substantial new investments if approved, according to a report by JPMorgan. Investors are increasingly optimistic about the approval of the first spot Solana (SOL) and spot XRP ETPs, especially with expectations of a more favorable regulatory environment under President-elect Donald Trump, who takes office on Jan. 20. In a Jan. 13 report shared with Cointelegraph , JPMorgan estimated that SOL and XRP ETPs could surpass the performance of spot Ether (ETH) ETFs within their first six months of trading. “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 stated. The forecast comes after the first anniversary of U.S. spot Bitcoin ETFs, which reached nearly $110 billion in cumulative holdings on Jan. 2. Bitcoin ETFs accounted for around 75% of new investments when Bitcoin reclaimed $50,000 in February, just a month after their debut. However, altcoin ETP adoption remains uncertain due to fluctuating investor demand. While Bitcoin ETFs saw a 6% adoption rate and Ether ETFs achieved 3% in their first six months, interest in altcoins like SOL and XRP is less predictable. “Outside of a few primary tokens (BTC, ETH, SOL), the episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time,” JPMorgan’s report explained. Several asset managers, including VanEck, Grayscale, and 21Shares, have submitted applications for Solana ETFs. The U.S. Securities and Exchange Commission is expected to make preliminary decisions by late January, with Grayscale’s deadline set for Jan. 23 and others by Jan. 25. Alejo Pinto, founder of Solana Layer-2 network Lumio, commented, “An ETF approval in the U.S. would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”