JPMorgan Predicts Solana and XRP Exchange-Traded Funds (ETFs) Could Attract $14 Billion in Investments

Banking giant JPMorgan (NYSE:JPM) has forecasted the next wave of cryptocurrency exchange-traded funds (ETFs)—focusing on Solana and XRP—could experience substantial growth if the U.S. Securities and Exchange Commission (SEC) gives the green light.

The bank has projected these ETFs could draw as much as $14 billion in investments within their first year. Specifically, Solana ETFs are estimated to attract between $3 billion and $6 billion, while XRP ETFs could amass between $4 billion and $8 billion in net new assets.

Matthew Sigel, head of digital assets research at VanEck, shared JPMorgan’s forecasts on the social media platform X, emphasizing how quickly new crypto ETFs can grow.

With the inauguration of crypto-friendly President-elect Donald Trump set for next week, investors are eagerly awaiting approval for Solana and XRP exchange-traded funds (ETFs).

Several prominent asset management firms, including Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital, have submitted applications for Solana and XRP ETFs. The financial watchdog is expected to make preliminary decisions on these applications by the end of January.

Solana and XRP are among the top 10 cryptocurrencies by market capitalization. Currently, Solana is trading at $186, reflecting a 5.3% gain, while XRP is trading at $2.50, showing a 5% increase in the past 24 hours.

Solana and Solana ETFs: What are they?

Founded in 2017, Solana is a high-performance blockchain network designed to support decentralized apps or dApps. Known for its speed, Solana can process transactions at a significantly faster rate than other blockchains, such as Ethereum. While Ethereum handles around 12-15 transactions per second, Solana claims to support up to 50,000 transactions per second, making it one of the fastest blockchain networks in the space. Additionally, Solana offers lower transaction fees, which enhances its appeal to developers and users.

Thanks to its speed and cost-efficiency, Solana has gained a reputation as a formidable competitor to Ethereum — Solana has often been dubbed the “Ethereum killer.” Its native token, Solana, or SOL, plays a crucial role in securing the network and providing rewards to participants.

Solana ETF, if approved, would be an exchange-traded fund that tracks the price of Solana, offering investors a way to gain exposure to Solana’s ecosystem without needing to directly purchase and hold SOL tokens. This would allow traditional investors to benefit from Solana’s growth potential through a more familiar investment vehicle.

XRP and XRP ETFs: What are they?

XRP is the native token of the XRP Ledger, an open-source blockchain. It is used by the Ripple payment network to facilitate cross-border transactions and is designed to act as a bridge currency. It’s important to note that Ripple, the company, operates the network but does not own XRP. Unlike Bitcoin, which has a capped supply of 21 million coins, XRP has a total supply of 100 billion tokens.

If the XRP ETF receives approval from the SEC, it will track the price of XRP, providing investors with a means to gain exposure to the XRP ecosystem without having to directly purchase and hold XRP tokens.

Crypto ETFs have experienced significant success

Bitcoin exchange-traded funds (ETFs) recently celebrated their first anniversary on January 10th. In this short period, they amassed $110 billion in assets, accounting for 6% of Bitcoin’s total market capitalization of $1.8 trillion. Similarly, Ether ETFs reached $12 billion in assets, compared to Ether’s market cap of $395 billion. This remarkable growth highlights the success of crypto ETFs over the past year.

Moreover, analysts are now providing data to suggest that investing in Bitcoin may be more advantageous than investing in gold. Over the past 30 years, more than 5,000 exchange-traded funds have been launched across various sectors, and Bitcoin ETFs have outperformed them all, including the historically successful gold ETFs.