XRP and Solana exchange-traded products, or ETPs, could attract as much as $14 billion in investment within their first year, banking giant JPMorgan says, suggesting huge demand for them if the federal government approves their debut.
Specifically, the bank forecasts that Solana ETPs could attract $3 billion to $6 billion of new assets within 6 to 12 months while XRP ETPs could garner $4 billion to $8 billion, according to the projections JPMorgan analysts published in a report on Monday.
The estimate is based on so-called “adoption rates” of Bitcoin and Ethereum ETPs. The adoption rate refers to the percentage of a token’s total market cap that is driven by ETPs. According to JPMorgan’s analysis, Bitcoin ETPs make up 6% of the Bitcoin's market cap and Ethereum ETPs make up 3% of Ethereum’s market cap.
ETPs are a type of investment product that track an underlying security, index, or other financial product. A common example of an ETP is an exchange-traded fund for stocks, known as an ETF. Asset management firms Grayscale, Bitwise, VanEck, Canary Capital and 21Shares have already submitted applications for Solana and XRP ETFs with the SEC. The agency is expected to make initial decisions on the filings by the end of this month.
Crypto Exchange-Traded Funds
The first crypto ETFs launched on Bitcoin and Ethereum last year. These products have been wildly successful, attracting more capital than many traditional ETFs and helping to push crypto into the mainstream. Driven by huge demand, Bitcoin ETFs attracted over $100 billion in less than one year.
The approval of additional crypto ETFs has been slowed by the Biden Administration and current SEC leadership who have led a crackdown on the industry in recent years, filing lawsuits against virtually every large crypto company in the U.S. In two ongoing SEC lawsuits that are expected to wind down under the Trump administration, Solana and XRP are labelled as securities, barring them from being approved for index-based ETFs.
With the upcoming inauguration of crypto advocate Donald Trump and resignation of anti-crypto SEC Chair Gary Gensler, investors anticipate a regulatory shift in favor of the industry. While it is not yet a guarantee that Solana and XRP ETFs will be approved, crypto bulls are hopeful that these leadership changes will initiate momentum.
Last month, Bloomberg analysts James Seyffart and Eric Balchunas released a report predicting “a wave of cryptocurrency ETFs” in 2025. While the two said that it is likely Solana and XRP ETFs will be approved this year, they expect other ETFs to come first, including those that track Ethereum and Bitcoin prices within the same fund.
