JPMorgan Predicts XRP and Solana ETFs Could Attract $15 Billion in Net Inflows

Highlights:

• JPMorgan estimates XRP and Solana ETFs could draw $15 billion inflows within a year.
• XRP and Solana see price increases, and trading volumes surge by 71% and 30%, respectively.
• Polymarket predicts a 59% chance for XRP ETF approval in 2025, and Ripple CEO is confident.

Banking giant JPMorgan has predicted that exchange-traded products (ETPs) for XRP and Solana (SOL) could collectively bring an inflow of approximately $15 billion within a year. This estimate is based on the market cap share captured by Bitcoin (BTC) and Ether (ETH) ETFs.

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Bitcoin ETFs accumulated about $108 billion in assets during the first year. This represents roughly 6% of Bitcoin’s total market cap. In comparison, Ether ETFs reached around $12 billion in assets. This accounts for about 3% of Ether’s market cap after six months.JPMorgan applied similar adoption rates to Solana and XRP EPFs, projecting inflows of $3-8 billion each. At present, Solana-related ETPs manage approximately $1.6 billion, while XRP products hold around $910 million.

SOL & XRP ETPs Could Attract $3-8bn Each: JPM

ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first… pic.twitter.com/7rApA2z71h

— matthew sigel, recovering CFA (@matthew_sigel) January 13, 2025

Matthew Sigel also shared his views on X, agreeing with the sentiment. He emphasized that ETFs could significantly improve liquidity for both SOL and XRP. However, JPMorgan’s report suggests that the fluctuating demand for altcoins makes predicting the performance of the next crypto-based ETF challenging.

The report stated:

“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.”

Nate Geraci, a leading ETF analyst, has predicted that a spot XRP ETF will be approved this year. Polymarket users estimate a 59% chance of approval by 2025, with a 50% likelihood of approval by July 31. Ripple CEO Brad Garlinghouse is confident XRP ETFs will happen, though Litecoin might get approved first. The SEC filed an appeal in the Ripple case in October, but the upcoming pro-crypto administration is expected to drop it. SEC Chair Gary Gensler will step down in a week.

Solana and Ripple Show Positive Momentum Following JPMorgan’s Bullish ETF Outlook

Solana and Ripple are showing positive momentum after JPMorgan projected a bullish outlook for their respective ETFs. In the past 24 hours, the price of Solana has increased by 6.55%, trading around $186. The cryptocurrency has experienced an over 30% surge in its 24-hour trading volume, indicating increased market interest. However, there has been a slight decline of 1.91% in its open interest, according to data from Coinglass.

XRP has risen by over 7.37% in the last 24 hours, with its price trading around $2.55. During this period, its trading volume has surged by 71.65%, while open interest has slightly increased by 0.30%.

BlackRock Leads Spot BTC and ETH ETF Inflows

Spot Bitcoin ETFs and Spot Ether ETFs have shown strong performance since their launches, with Bitcoin achieving a 12-month timeline and Ether around six months. Historical data from Farside Investors reveals cumulative inflows of $35.9 billion for Bitcoin ETFs and $2.4 billion for Ether ETFs. BlackRock leads the inflows, recording $37.6 billion for BTC ETFs and $3.6 billion for ETH ETFs.

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