JP Morgan: Solana and XRP ETFs Could Attract Billions, but Bitcoin Still Dominates

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January 15, 2025 2:57 PM

In Brief:
JP Morgan predicts Solana ETFs could attract $4–$8 billion, while XRP ETFs may draw $3–$6 billion in investment.
Bitcoin ETFs remain unmatched, with BlackRock’s iShares Bitcoin Trust managing $50 billion in its first year.

Altcoin ETFs: A Promising Yet Limited Opportunity

In a recent report, JP Morgan analysts projected significant investor interest in Solana and XRP exchange-traded funds (ETFs). Despite potential inflows reaching billions of dollars, these altcoin-focused funds are unlikely to replicate the unprecedented success of Bitcoin ETFs.

The report anticipates:

  • XRP ETFs: $3–$6 billion in investments.
  • Solana ETFs: $4–$8 billion in investments.

Analysts noted that altcoins like Solana and XRP lack the market dominance and investor appeal of Bitcoin, which remains the favored asset in both spot trading and ETF products.

Bitcoin and Ethereum Lead the ETF Market

Bitcoin ETFs, launched last year, have set a high benchmark, with BlackRock’s iShares Bitcoin Trust amassing $50 billion in assets within its first year. Ethereum ETFs, while slower to gain traction, have also established themselves as significant products.

In comparison, Solana and XRP ETFs, if approved, would likely draw investor interest but remain smaller in scale due to their altcoin status and episodic market trends.

Asset managers like Grayscale, VanEck, and Bitwise have already filed paperwork for XRP and Solana ETFs, signaling growing institutional interest in expanding crypto investment vehicles.

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