A newly circulated research note from JP Morgan suggests that XRP and Solana (SOL) could each attract significant capital inflows once exchange-traded products tied to these tokens are approved by the US Securities and Exchange Commission (SEC). Matthew Sigel, Head of Digital Assets Research at VanEck, shared the report’s highlights via X and stated: “SOL & XRP ETPs Could Attract $3-8bn Each: JPM.”
XRP And Solana ETF Projections By JP Morgan
The bank’s analysis draws parallels between the market penetration of Bitcoin (BTC) and Ethereum (ETH) ETPs and the likely trajectory for Solana and XRP. According to the research, ETP assets of $108 billion represent 6% of Bitcoin’s total market cap of $1,874 billion after the first year of BTC ETPs trading. Ether ETP assets of $12 billion reflect about 3% of Ethereum’s total market cap of $395 billion within the first six months of ETH ETPs.
These adoption metrics have been applied to both altcoins to estimate the scale of potential capital inflows. Projections suggest Solana could gather between $3 and $6 billion in net new ETP assets, while XRP’s inflows might reach $4 to $8 billion. A chart accompanying the report shows that Bitcoin and Ethereum boast comparatively larger market valuations than both altcoins, underlining the possibility of significant growth if the latter tokens achieve ETP adoption rates similar to those of BTC and ETH.
The report specifically discusses the potential market for Solana and XRP ETPs based on a 6-to-12-month timeframe following a hypothetical launch. At a 6% penetration rate, Solana’s market cap of $90.5 billion could translate to approximately $5.2 billion in ETP assets, while a 3% rate would amount to about $2.7 billion. With a $146.5 billion market cap, XRP might attract $8.4 billion at the 6% threshold or $4.3 billion at the 3% mark.
Notably, multiple prominent firms have filed proposals to launch spot XRP ETFs in the United States, each taking a distinct approach. Bitwise was the first to submit its application on October 2, 2024. Having long been recognized as an innovator in crypto-based investment products, the firm has currently boasts the fourth-largest spot Bitcoin ETF behind financial giants BlackRock, Fidelity and Ark Invest.
Canary Capital, though less established, followed suit on October 9, 2024. Shortly thereafter, 21Shares filed its own proposal on November 1, 2024. Their proposal includes listing the Core Trust on the Cboe BZX Exchange, with Coinbase Custody Trust Company acting as the custodian. WisdomTree filed on December 2, 2024, aiming to list the ETF on the Cboe BZX Exchange, with Bank of New York Mellon proposed as the trust administrator.
At press time, XRP traded at $2.57.
