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JPMorgan has recently hinted at the potential adoption of Solana (SOL) and XRP ETFs, following the success of U.S. crypto ETFs, which have made significant strides over the past year. This positive outlook has resulted in increased upside momentum for SOL and XRP tokens, signaling the possibility of a rally in the near future.
In a recent report, JPMorgan forecasted that both Solana and XRP ETFs could collectively bring in between $6 billion and $16 billion within a year, based on the same adoption rates seen with Bitcoin and Ether ETFs. Historically, Bitcoin ETFs reached around $108 billion in assets in their first year, representing 6% of its total market cap, while Ether ETFs accumulated $12 billion in the same timeframe. By applying similar metrics, JPMorgan predicts each ETF could see between $3 billion and $8 billion in assets.
Matthew Sigel, an analyst at JPMorgan, further solidified this view by stating that ETFs could be a game-changer for Solana and XRP liquidity. This development comes shortly after JPMorgan CEO Jamie Dimon expressed skepticism about Bitcoin despite its increasing demand from clients.
SOL & XRP ETPs Could Attract $3-8bn Each: JPM
— matthew sigel, recovering CFA (@matthew_sigel) January 13, 2025
ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first… pic.twitter.com/7rApA2z71h
Crypto ETFs Performance and Impact
The performance of Bitcoin and Ether ETFs has been impressive. Over 12 months, Spot Bitcoin ETFs recorded $35.9 billion in cumulative inflows, while Spot Ether ETFs saw $2.4 billion in assets. BlackRock has been a major contributor to these inflows, leading both Bitcoin and Ether ETF markets with $37.6 billion and $3.6 billion, respectively.
However, recent data shows that both Bitcoin and Ether ETFs have experienced outflows, with Bitcoin seeing $284.1 million in outflows and Ether $39.4 million on January 13. Despite these setbacks, confidence in crypto ETFs remains strong, especially with the prospect of new crypto ETFs being approved under the Trump administration.
SOL and XRP Price Surge
In the wake of JPMorgan’s bullish predictions, both Solana and XRP have witnessed notable price upticks. Solana’s price has risen by 2% in the last 24 hours, trading at $185.81, with a surge of 156.75% in trading volume. XRP has also seen a 2% increase, trading at $2.53, with its trading volume up by 71.65%.
Also Read: JPMorgan’s Jamie Dimon Slams Bitcoin, Compares It to Smoking, Supports Blockchain
As the market anticipates the approval of Solana and XRP ETFs, both tokens are poised for potential growth, driven by increased liquidity and growing investor confidence.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
