- JPMorgan says XRP ETFs could raise $8.4B, boosting price to $2.69 with approval.
- JPMorgan projects Solana ETFs may attract $5.2B, raising price to $197.7 if approved.
- SEC to decide on XRP and Solana ETFs by 2025 as JPMorgan forecasts $15B inflows.
According to a JP Morgan report, XRP and Solana ETFs may attract between $3 billion and $8 billion in inflows once approved. The estimates made on this basis are relatively high and imply significant changes in both market capitalization and token prices similar to the adoption seen with Bitcoin and Ethereum ETFs.
Market prospects for XRP and Solana ETFs
JPMorgan states that the listed Bitcoin ETFs reached $108 billion in assets under management in the first year, equivalent to 6% of the Bitcoin market cap. Subsequently, Ethereum ETFs emerged, garnering $12 billion in assets or approximately 3% of Ethereum’s market capitalization in six months. The bank projects high inflows when using these metrics on XRP and Solana.
As for XRP, the 3% rate may attract $4.3 billion, bringing up its market cap to $150.8 billion from the current $146.5 billion. A 6% rate could be $8.4 billion to lift the cap to $154.9 billion. This increment would lead to the probability of XRP rising from $2.55 to $2.62 – $2.69, depending on the current supply of 57.5 billion tokens.
Solana having a market cap of $90.5 billion, could attract $2.7 billion with 3% APY and $5.2 billion with 6% APY, taking its market cap to $93.2 billion and $95.7 billion, respectively. Currently, Solana has a circulating supply of 484 million tokens, and depending on the available market, it could go for anywhere from $192.5 to $197.7 in the next few weeks.
Approval could change market liquidity and accessibility
The U.S. SEC has not yet approved XRP and Solana-based ETFs and is still pending. Current patterns indicate a positive regulatory climate, and the SEC is expected to decide on XRP ETF applications on January 25, 2025. These applications came from many top firms, such as WisdomTree, 21Shares, and Bitwise.
Interest in Solana ETFs is also growing. In June 2024, VanEck, a major player, applied for a Solana ETF. Grayscale has also been trying to convert its Solana Trust Fund into an ETF, and a decision is due by January 23, 2025.
Moreover, as seen with Bitcoin ETFs, that let Bitcoin rise beyond $100,000 in 2024. This success also indicates the growing prospects of new products, such as XRP and Solana ETFs, in increasing market liquidity and openness.
Market Effects and Future Prospects
According to JPMorgan’s analysis, the key driver of change is the regulated investment products. This would help stabilize trading conditions and facilitate price discovery for XRP and Solana from a greater influx in flow.
While regulatory approval is still uncertain, forecasts expect certain changes under the new leadership in 2025. If approved, they can grant a broader exposure to digital assets, thus opening new investing opportunities for institutional and retail buyers.
