JPMorgan, JPM, says XRP, Solana ETFs could bring in $13.6 billion in first year, if approved

XRP and Solana exchange-traded products (ETPs) could see up to $14 billion in investment within their first year if approved by federal regulators, according to projections from banking giant JPMorgan. The report highlights significant investor demand for these products should they debut.

JPMorgan analysts estimate that Solana ETPs could attract between $3 billion and $6 billion in assets within six to twelve months, while XRP ETPs could draw $4 billion to $8 billion during the same period. These estimates are based on the adoption rates of existing Bitcoin and Ethereum ETPs, which account for 6% and 3% of their respective market caps.

ETPs are financial products that track an underlying asset, such as a security or index, allowing investors to gain exposure to those assets without directly owning them. Examples include exchange-traded funds (ETFs). Several asset managers, including Grayscale, Bitwise, VanEck, Canary Capital, and 21Shares, have submitted applications for Solana and XRP ETFs, with the SEC expected to make preliminary decisions by the end of the month.

Crypto ETFs: A Growing Market

The first cryptocurrency ETFs, focused on Bitcoin and Ethereum, launched last year and have been met with remarkable success. Bitcoin ETFs alone attracted over $100 billion in capital within a year, showcasing strong demand and driving greater mainstream adoption of crypto assets.

However, the approval of additional crypto ETFs has faced delays due to regulatory crackdowns under the Biden administration and SEC leadership. The SEC has pursued legal actions against major crypto companies, labeling assets like Solana and XRP as securities, which currently prevents their inclusion in ETFs.

Anticipated Regulatory Shifts

The upcoming inauguration of crypto advocate Donald Trump and the expected resignation of SEC Chair Gary Gensler could signal a regulatory shift favorable to the industry. Investors are optimistic that new leadership may pave the way for the approval of XRP and Solana ETFs.

In a recent report, Bloomberg analysts James Seyffart and Eric Balchunas forecasted "a wave of cryptocurrency ETFs" in 2025. While they anticipate Solana and XRP ETFs may be approved later this year, they expect initial approvals to focus on multi-asset ETFs combining Bitcoin and Ethereum within a single fund.