JPMorgan Predicts $14B Inflows for Solana and XRP ETFs—Will the SEC Agree?

NAIROBI (CoinChapter.com)— Exchange-traded products (ETPs) for Solana (SOL) and XRP could draw billions in investments, according to projections by JPMorgan. The banking giant estimates these crypto ETPs could attract between $7 billion and $14 billion in net inflows if approved, driven by investor interest and market adoption trends.

ETF Applications Signal a Shift in U.S. Crypto Regulations

The U.S. Securities and Exchange Commission (SEC) is expected to decide on Solana ETF applications by the end of Jan. 2025, following President-elect Donald Trump’s inauguration on Jan. 20. Major asset managers, including Grayscale, VanEck, and WisdomTree, have filed applications, anticipating a regulatory shift under the new administration.

In its Jan. 13 report, JPMorgan predicted that SOL and XRP ETPs could outperform Ether (ETH) ETFs during their first six months of trading. SOL could secure $3 billion to $6 billion in net inflows, while XRP might attract $4 billion to $8 billion. The forecasts are based on adoption rates observed in Bitcoin (BTC) and Ethereum ETFs, which achieved 6% and 3% penetration rates, respectively, in their initial trading periods.

XRP and Solana Prices Surge as ETF Hopes Defy SEC Challenges

Despite projections of billions in potential inflows, the SEC recently rejected Solana ETF proposals, underscoring ongoing regulatory challenges. Ripple Labs also remains entangled in its legal battle over XRP’s status as a security, adding further uncertainty to the approval of ETFs tied to these assets.

Bloomberg analysts James Seyffart and Eric Balchunas suggest that ETFs linked to Litecoin (LTC) and Hedera (HBAR) may gain approval first due to their clearer regulatory standing.

However, market sentiment for XRP and Solana remains bullish. Following JPMorgan’s forecast, Solana’s price jumped 5.4% to $187.70, while XRP climbed 8% to $2.57. Both assets saw substantial trading volume increases, reflecting investor optimism despite regulatory hurdles.

ETPs have historically driven asset growth, with Bitcoin ETFs contributing 75% of BTC’s 2024 investments, amassing $108 billion in inflows. Matthew Sigel of VanEck called Solana and XRP ETFs potential “game changers” due to their ability to attract regulated capital.

Despite this optimism, the unpredictable nature of altcoin demand raises questions about the impact of these ETFs. If approved, SOL and XRP ETFs could transform the crypto investment landscape, creating new opportunities for institutional participation.

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