JPMorgan Estimates $3-8 Billion First-Year Inflows for Proposed SOL and XRP ETFs

TLDR

• JPMorgan forecasts $3-8 billion potential inflow for each Solana and XRP ETF within their first year, based on Bitcoin and Ethereum ETF adoption patterns
• Trump administration is expected to approve new crypto ETFs currently under SEC review
• Bitcoin ETFs accumulated $108 billion (6% of market cap) in first year, while Ethereum ETFs reached $12 billion (3%) in six months
• BlackRock leads inflows for both BTC and ETH ETFs, with $37.6 billion and $3.6 billion respectively
• SOL and XRP prices showed positive movement following JPMorgan’s forecast, with both tokens up by approximately 2%

JPMorgan has released new research projecting potential inflows of $3-8 billion each for Solana and XRP exchange-traded funds (ETFs) within their first year of launch. The forecast comes as the financial industry anticipates potential approval of new crypto ETFs by the incoming Trump administration.

The banking giant based its projections on the adoption patterns seen with existing Bitcoin and Ethereum ETFs. Bitcoin ETFs have attracted approximately $108 billion in assets during their first year, representing about 6% of Bitcoin’s total market capitalization. Similarly, Ethereum ETFs accumulated around $12 billion in assets, approximately 3% of its market cap, within six months of their launch.

By applying similar adoption rates to Solana and XRP, JPMorgan analysts arrived at their multi-billion dollar projections. These forecasts suggest a strong appetite for crypto investment products among institutional and retail investors alike.

The cryptocurrency market has responded positively to JPMorgan’s analysis. Solana’s price increased by 2% following the report’s release, reaching $185.81. The token’s trading volume surged by 156.75% over 24 hours, though open interest declined by 4.65%.

XRP showed similar momentum, with its price rising more than 2% to reach $2.53. The token experienced a 71.65% increase in 24-hour trading volume, while open interest grew by 0.30%.

Matthew Sigel, a market analyst, shared his thoughts on social media platform X, describing the potential ETFs as “game changers” for SOL and XRP liquidity. This assessment aligns with the growing consensus about the impact of ETF products on crypto market accessibility.

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

The timing of JPMorgan’s forecast is particularly notable, as it comes shortly after CEO Jamie Dimon expressed skepticism about Bitcoin, despite strong demand from the bank’s clients for crypto investment products.

Looking at current ETF performance, BlackRock has emerged as the leader in both Bitcoin and Ethereum ETF markets. The investment management firm has recorded inflows of $37.6 billion for its Bitcoin ETF and $3.6 billion for its Ethereum ETF, according to data from Farside Investors.

The total historical cumulative inflows for spot Bitcoin ETFs stand at $35.9 billion, while Ethereum ETFs have attracted $2.4 billion. These figures demonstrate the market’s appetite for regulated crypto investment vehicles.

Recent data shows some short-term fluctuations in ETF flows. On January 13, Bitcoin ETFs experienced an outflow of $284.1 million, while Ethereum ETFs saw $39.4 million leave the market. This marked the third consecutive day of outflows for both major U.S. crypto ETFs.

The potential approval of new crypto ETFs by the Trump administration could expand investment options in the digital asset space. Several applications for crypto ETFs are currently under review by the Securities and Exchange Commission (SEC).

The success of existing crypto ETFs has created a blueprint for new products entering the market. The adoption rates of Bitcoin and Ethereum ETFs provide valuable data points for projecting the potential success of future offerings.

Market observers note that institutional investment vehicles like ETFs can make crypto assets more accessible to traditional investors. These products often provide a regulated and familiar way to gain exposure to digital assets.

The projected inflows for Solana and XRP ETFs could bring additional liquidity to these markets. Increased liquidity typically leads to more stable trading conditions and better price discovery.

JPMorgan’s analysis suggests that the crypto ETF market continues to evolve and expand. The potential addition of Solana and XRP ETFs could further diversify investment options in the digital asset space.