Solana News Today: JPMorgan: Solana ETFs Struggle as Investors Favor Diversified Crypto Funds

Solana's native token, SOL, fell 5% on October 9, 2025, amid renewed skepticism over the performance of upcoming spot Solana exchange-traded funds (ETFs. JPMorgan analysts, led by Nikolaos Panigirtzoglou, projected that Solana ETFs would attract only $1.5 billion in first-year inflows-roughly one-seventh of the $10.5 billion estimated for Ethereum ETFs in their initial year. The bank attributed this disparity to weak network activity, investor fatigue, and competition from diversified crypto index products. Despite a widely anticipated U.S. Securities and Exchange Commission (SEC) approval this week, JPMorgan cautioned that the inflows could fall short of even this modest estimate.

The report highlighted declining on-chain activity on the Solana network, including falling active addresses since November 2024, and the dominance of memecoin trading, which could divert capital from more traditional crypto assets. Additionally, the analysts noted that corporate treasury products offering yield and diversified crypto index funds, such as those tied to the S&P Dow Jones Indices Digital Markets 50, could further erode demand for single-asset Solana ETFs. These factors, combined with waning investor enthusiasm after multiple ETF launches, suggest a challenging environment for new Solana products.

The SEC's regulatory framework has evolved to expedite crypto ETF approvals, with a new set of "generic listing standards" for spot commodity ETFs introduced in September 2025. This shift, coupled with the July launch of the first Solana ETF by REX Osprey, has increased the likelihood of approvals for pending applications. However, JPMorgan emphasized that optimism is already reflected in market pricing. The Grayscale Solana Trust (GSOL) premium to net asset value (NAV) has collapsed from over 750% in 2024 to near zero, mirroring trends seen in Bitcoin and Ethereum ETFs before their launches. This suggests that much of the anticipated demand may have already been priced in.

Market data further underscores the headwinds facing Solana ETFs. Chicago Mercantile Exchange (CME) Solana futures positioning shows muted demand, and the bank noted that institutional investors are increasingly favoring nuanced, stock-like strategies over single-asset bets. For context, Ethereum ETFs attracted $2.3 billion in inflows during their first three months, while the REX Osprey Solana ETF has drawn only $350 million since its launch. Applying a 1/7th ratio to Ethereum's first-year inflows of $9.6 billion, JPMorgan estimated Solana's potential at $1.5 billion-a figure it described as optimistic given current conditions.

The broader regulatory landscape remains dynamic. The SEC is expected to decide on approximately 16 spot crypto ETF applications in October, including those for Solana and XRP. While the Trump administration's focus on regulatory clarity has accelerated the process, analysts at Bloomberg Intelligence and Cointelegraph noted that the long-term growth story may lie in basket or index products rather than single-asset offerings. This aligns with Grayscale's recent launch of a diversified crypto index fund, which aims to provide a "one-stop shop" for portfolio exposure.

Institutional adoption of Solana is also under scrutiny. Despite its prominence in decentralized finance (DeFi) and Web3 projects, the token's market share in DeFi total value locked (TVL) remains significantly smaller than Ethereum's. This gap, combined with the lack of staking features in most Solana ETF proposals, could limit its appeal to yield-seeking investors. Meanwhile, Bitcoin ETFs continue to dominate the market, holding over 1.47 million BTC in assets-around 7% of the total supply-as of August 2025.

The Solana price decline comes as the market awaits a final SEC decision, with the October 16 deadline for five major Solana ETF applications. While regulatory tailwinds suggest approvals are likely, the magnitude of inflows remains uncertain. JPMorgan's analysis underscores a broader trend: as crypto ETFs mature, investors are prioritizing diversification and institutional-grade products over speculative bets on individual altcoins.

Source: [1] JPMorgan Sees Modest Inflows for Solana ETFs Despite Likely SEC Approval (https://www.coindesk.com/markets/2025/10/09/jpmorgan-sees-modest-inflows-for-solana-etfs-despite-likely-sec-approval)

[2] JPMorgan says Solana ETFs could see low inflows of around $1.5 ... (https://www.theblock.co/post/374019/jpmorgan-solana-etfs-low-inflows-1-5-billion-first-year)

[3] SEC's New Rules May Fast-Track Solana, XRP ETFs - Cointelegraph (https://cointelegraph.com/news/altcoin-etfs-face-decisive-october-as-sec-adopts-new-listing-standards)

[4] SEC Delays Spot Solana ETF Decision to October 2025 (https://coinpaper.com/10525/solana-etf-hopefuls-face-new-sec-deadline-amid-rising-market-interest)

[5] Solana ETF Approvals Could Arrive by Mid-October, Says Analyst (https://finance.yahoo.com/news/solana-etf-approvals-could-arrive-113100782.html)

[6] Solana ETFs Face SEC Delay, Decision Postponed to ... (https://cryptonews.com/news/solana-etfs-face-sec-delay-decision-postponed-to-october/)

[7] JPMorgan Estimates $3-8 Billion First-Year Inflows for Proposed ... (https://blockonomi.com/jpmorgan-estimates-3-8-billion-first-year-inflows-for-proposed-sol-and-xrp-etfs/)