Wall Street Used to Scoff at Crypto. Now, It's Lining Up to Back the Next Wave of Blockchian-Backed ETFs.

Wall Street used to scoff at crypto. Now, it's lining up behind it, pen in hand, ready to sign off on the next wave of blockchain-backed ETFs. And this time, it's not just about Bitcoin or Ethereum.

Wall Street's giants are pivoting quickly. Once scoffing at crypto, they're now lining up, pen in hand, to sign off on the next wave of blockchain-backed ETFs. And this time, it's not just Bitcoin (BTC) or Ethereum (ETH) they're eyeing. According to JP Morgan (NYSE:JPM) analysts, the next frontier could hold two surprising additions: XRP and Solana (CRYPTO: SOL), and the implications are huge.

For years, XRP has battled regulators, and Solana has clashed with technical outages. Both tokens have survived, adapted, and emerged, ready for the next stage. Now, with whispers of an XRP ETF and new data from CME Group (NYSE:CME) on the launch of XRP futures, the time could be ripe for these once-controversial tokens to enter the institutional sphere as billion-dollar investment opportunities.

But how does it all add up? And what price predictions do the numbers hold for these two tokens as institutions move in? Let's break down what's coming and why XRP and Solana might be about to rewrite the rules of crypto investing.

XRP ETF Momentum Builds: CME Group Signals What’s Next

The investment world will be watching closely as the Chicago Mercantile Exchange (CME) Group prepares to launch XRP futures on Friday, May 19. It’s not a rumor; it’s a signal. When CME moves, it means institutional money is getting involved. And in the case of futures contracts, it’s often the prelude to an ETF launch.

The same pattern unfolded with Bitcoin, paving the way for the ProShares Bitcoin Strategy ETF (NYSE:BITO), the first BTC ETF to trade on US exchanges in 2021. Afterwards, we saw the launch of the Ethereum futures contracts, setting the stage for the debut of the iShares Ethereum Trust ETF (NYSE:ETHF) earlier this year.

Could XRP be next in line?

With the recent developments in Ripple’s case against the US Securities and Exchange Commission, the timing couldn’t be more strategic. As the case progresses and institutions seek new avenues for exposure to the crypto market, these factors converge to create a perfect storm for an XRP ETF launch.

The numbers speak for themselves. XRP has surged to nearly $2.50, reaching its highest price since January 2018, as crypto whales have poured an estimated $1.66 billion into the token over the past three weeks alone, according to blockchain analytics firm TRM Labs.

If even 6% of ETF capital flows into XRP at its current $146.5 billion market cap, we could see an additional $22 billion being added to the token’s valuation. To put that into perspective, South Korean traders are currently putting an average of $3.8 billion per day into XRP on the Upbit exchange.

The hype is certainly there, and so are the ghosts of past legal battles. But ultimately, an XRP ETF could be the golden ticket for Ripple, and these futures might be the key that unlocks the door.

Solana ETFs with Staking? Canada May Be Leading the Charge

While US regulators are still locked in their usual squabble and stall, Canada just dropped a bombshell that could rapidly reshape the landscape of crypto investing.

Canadian regulators are now reviewing applications for spot Solana ETFs with staking rewards, and they’ve already given the green light to multiple issuers. Among those in the queue for approval are Purpose, Evolve, CI, and 3iQ.

Hold up, what does that mean exactly?

Essentially, investors could soon be able to buy Solana ETFs on the Toronto Stock Exchange, and these ETFs would come with the added benefit of providing a portion of Solana’s staking rewards to ETF investors. It’s a novel concept within the traditional finance sphere, where ETFs are typically known for tracking an index without any capital gains or interest payments.

But wait, there’s more. JP Morgan analysts are already putting their minds to work on the potential capital flows and price impacts of these Solana ETFs. Their calculations suggest that these ETFs could attract an estimated $3 billion to $6 billion in capital.

To put that into perspective, if we consider an average inflow of $4 billion and factor in an assumed 5% management fee for the ETF issuers, it translates to an annual fee revenue of $200 million for the ETF providers.

With Solana’s market cap currently standing at $90.5 billion and the SOL price at $124.4, even a modest 5% increase in Solana’s market cap would be required to accommodate such capital inflows. This would bring Solana’s market cap to $95.7 billion and the SOL price to $197.7.

If the narratives around Decentralized Finance (DeFi) and meme coins continue to generate strong