JPMorgan: Altcoin ETFs Could Attract $14 Billion in First Year

JPMorgan has forecasted that proposed altcoin exchange-traded funds (ETFs) for Solana (SOL) and Ripple (XRP) could attract up to $14 billion in investments within their first year if approved. The banking giant's prediction is based on market penetration rates similar to existing Bitcoin and Ethereum ETFs, which currently represent 3-6% of their respective tokens' market capitalizations.

For Solana, with a current market cap of $90.5 billion, potential ETF assets could reach $5.2 billion at 6% penetration or $2.7 billion at 3% penetration. For XRP, with a market cap of $146.5 billion, potential ETF assets could reach $8.4 billion at 6% penetration or $4.3 billion at 3% penetration.

JPMorgan's report was based on the adoption rates of Bitcoin and Ethereum ETFs, which have generated significant interest since their respective launches. The bank said in their report that cryptos "outside of a few primary tokens (BTC, ETH, SOL)," might not gain the same traction in the market due to their "limited depth."

Several asset managers have already filed applications for Solana ETFs. Among the firms that have submitted applications are VanEck, Grayscale, 21Shares, Bitwise and Canary Capital. The US Securities and Exchange Commission (SEC) is expected to share preliminary decisions on these applications by the end of this month.



JPMorgan's forecast comes shortly after the 1-year anniversary of the launch of spot Bitcoin ETFs in the US, which have recorded $35.94 billion in cumulative net inflows since their launch. It also comes amid growing anticipation that Donald Trump's administration will encourage more crypto-friendly policies.

Should SOL and XRP ETFs get the greenlight and subsequently launch in the coming months, it could push the cryptos' prices to new all-time highs. The influx of capital into Bitcoin through spot ETFs accounted for roughly 75% of new investment for the leading crypto in the last 12 months.

My 10 crypto-related ETF predictions for 2025…https://t.co/uDj1OCkaVQ pic.twitter.com/ye3zA2sinV
— Nate Geraci (@NateGeraci) January 11, 2025