JPMorgan Predicts $3 Billion to $8 Billion Inflow for Solana and XRP ETFs if Approved by Trump Administration
JPMorgan has projected that Solana (SOL) and XRP ETFs could attract inflows of $3 billion to $8 billion each within a year if approved under the Trump administration. This estimate is based on historical data from the performance of Bitcoin and Ether ETFs in their first year.
Key Highlights
- JPMorgan’s report estimates a potential $15 billion combined inflow for SOL and XRP ETFs.
- The forecast considers the market share captured by Bitcoin and Ether ETFs within 12 months of launch.
- SOL and XRP prices have surged following the optimistic report.
ETF Projections and Market Sentiment
JPMorgan’s analysis applies the adoption rates seen in Bitcoin ETFs, which accumulated $108 billion in their first year (around 6% of BTC’s total market cap), and Ether ETFs, which reached $12 billion (approximately 3%) within six months. Applying these rates, the estimated inflows for Solana and XRP ETFs range between $3 billion and $8 billion each.
Market expert Matthew Sigel echoed JPMorgan’s sentiments, calling crypto ETFs a game-changer for SOL and XRP liquidity.
Interestingly, this positive projection for SOL and XRP ETFs comes shortly after JPMorgan CEO Jamie Dimon expressed skepticism about Bitcoin, despite rising client demand.
Bitcoin and Ether ETF Performance
Bitcoin and Ether ETFs have shown strong growth since their inception:
- Bitcoin ETFs: $35.9 billion cumulative inflows over 12 months.
- Ether ETFs: $2.4 billion inflows in six months.
BlackRock leads ETF inflows, recording $37.6 billion for Bitcoin ETFs and $3.6 billion for Ether ETFs.
However, recent market data shows that both ETFs experienced three consecutive days of outflows, with $284.1 million withdrawn from Bitcoin ETFs and $39.4 million from Ether ETFs on January 13.
SOL and XRP Price Reactions
Following JPMorgan’s optimistic forecast, both Solana and XRP have shown positive price movements:
- Solana (SOL): Up 2% in the past 24 hours, trading around $185.81, with a 156.75% increase in trading volume despite a 4.65% drop in open interest.
- XRP: Up over 2%, priced at $2.53, with a 71.65% surge in trading volume and a slight 0.30% rise in open interest.
Conclusion
The forecast for Solana and XRP ETFs has fueled market optimism, with traders and investors anticipating greater liquidity and potential price growth. The approval of these ETFs could mark a significant milestone in the broader adoption of crypto assets, especially if they follow the success trajectory of Bitcoin and Ether ETFs. However, market participants remain cautious, tracking regulatory developments closely.
