JP Morgan Estimates XRP and Solana ETFs Could Attract $3-8B After Approval
JP Morgan predicts that if XRP and Solana ETFs are approved, they could attract between $3 billion and $8 billion in investments. Matthew Sigel, Head of Digital Assets Research at VanEck, shared these projections on X. The report emphasizes the potential impact of ETF approvals on the market caps and prices of XRP and Solana.
Projected Inflows and Market Impact
To provide context, JP Morgan’s report compares the adoption rates of Bitcoin and Ethereum ETFs, which have seen similar successes following their approval. The bank highlights that Bitcoin ETFs accumulated $108 billion in assets, accounting for 6% of Bitcoin’s market cap within their first year. Similarly, Ethereum ETFs reached $12 billion in assets, representing 3% of Ethereum’s market cap in six months.
JP Morgan applied these rates to XRP and Solana ETFs. Notably, for XRP, with a market cap of $146.5 billion at the time of the report, a 3% inflow comparable to Ethereum’s inflows could bring in an additional $4.3 billion, raising the market cap to $150.8 billion.
Moreover, a 6% inflow similar to Bitcoin’s might add $8.4 billion, resulting in a $154.9 billion market cap. Given the circulating supply of 57.5 billion tokens, XRP’s price could increase from the current $2.55 to between $2.62 and $2.69.
As for Solana, with a market cap of $90.5 billion, a 3% inflow similar to Ethereum’s inflows could introduce an additional $2.7 billion, raising the market cap to $93.2 billion. Alternatively, a 6% inflow comparable to Bitcoin’s performance might contribute $5.2 billion, leading to a $95.7 billion market cap. Considering a circulating supply of 484 million tokens, SOL’s price could rise from the current $185.8 to between $192.5 and $197.7.
XRP and Solana ETF Potentials
It is important to note that the potential approval of XRP and Solana ETFs is still under consideration. The U.S. Securities and Exchange Commission (SEC) has been reviewing various ETF applications, but recent developments indicate a more favorable stance.
In late 2024, several firms, including WisdomTree, 21Shares, Canary Capital, and Bitwise, submitted applications for XRP ETFs. Similarly, there has been an increase in filings for Solana ETFs. The SEC is expected to make initial decisions on these filings by Jan. 25, 2025.
Following the success of its Bitcoin ETF, VanEck was one of the first asset managers to apply for a spot Solana ETF in June 2024. Additionally, Grayscale has applied to convert its Solana Trust Fund into an ETF, with a review deadline set for Jan. 23, 2025.
The crypto market has experienced significant growth, with Bitcoin’s price surpassing $100,000 after the introduction of spot Bitcoin ETFs in 2024. This success has generated interest in ETFs for other cryptocurrencies, including Ethereum, Solana, and XRP.