Cryptocurrency

JP Morgan Predicts Solana (SOL) and XRP ETPs Could Attract $3 to $8 Billion

Matthew Sigel, Head of Digital Asset Research at VanEck, has highlighted an analysis by JPMorgan, which projects that exchange-traded products (ETPs) for XRP and Solana could attract between $3 billion and $8 billion.

These estimates are based on adoption rates observed in Bitcoin and Ethereum ETPs, signaling strong growth potential for these digital assets.

Historical Context of ETP Adoption

According to the image shared by Sigel, Exchange-traded products tied to Bitcoin currently hold $108 billion in assets, which accounts for 6% of Bitcoin’s market capitalization of $1.874 trillion.

Similarly, Ethereum ETPs reached a penetration rate of 3% of the asset’s total market cap—$12 billion of assets relative to Ethereum’s $395 billion market cap—within their first six months of operation.

JPMorgan analysts applied these adoption metrics to forecast potential outcomes for XRP and Solana. If these assets achieve similar levels of penetration, their ETPs could unlock significant new capital flows into the respective markets.

XRP and Solana ETP Projections

The report suggests that XRP, with its market cap of $146.5 billion at the time of the analysis, could attract between $4.3 billion (at a 3% penetration rate) and $8.4 billion (at a 6% penetration rate) into ETPs. Solana, with a market cap of $90.5 billion, might see inflows ranging from $2.7 billion (3%) to $5.2 billion (6%).

These projections underline the strong potential of both assets to capture a significant share of institutional and retail investment through ETPs. Sigel’s insights align with the growing optimism around the development and mainstream adoption of crypto-linked investment products.

Institutional and Retail Implications

The potential influx of billions into XRP and SOL through ETPs could mark a pivotal step in broadening access to these digital assets. ETPs simplify exposure to cryptocurrencies for institutional investors and retail participants by bypassing the complexities of direct token ownership.

The success of XRP and Solana ETPs would further validate the demand for regulated and tradable investment products tied to cryptocurrencies. Additionally, these projections come at the moment when regulatory clarity for XRP is expected to improve with Donald Trump’s administration.

Experts believe the SEC will dismiss its lawsuit against Ripple once Trump takes office, and provide proper crypto-friendly regulation to help the industry grow. This would increase investor confidence, and XRP’s ability to draw institutional interest.

JPMorgan’s analysis highlights the importance of ETP adoption rates as a key indicator of institutional interest in cryptocurrencies. If Solana and XRP replicate the success of Bitcoin and Ethereum, they could significantly strengthen their positions within the broader cryptocurrency ecosystem.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

Recent Posts

TRON And RENDER Prices Face Resistance As Investors Flock To New PropFi Coin With Funded Trading Account Utility

The crypto crash in the past few days has seen most top altcoins bleed out…

17 minutes ago

Once XRP Completes This Throwback, Analyst Says Next Target Is All-Time High

Dark Defender, a well-known analyst in the XRP community, recently shared a technical analysis on…

26 minutes ago

State-of-the-Art Machine Learning Model Sets XRP Price For January 31, 2025

Recent developments in the cryptocurrency market have placed XRP in a notable position. With the…

2 hours ago

XRP Daily Break Leaving Ichimoku Clouds, Analyst States Its Significance On XRP Price

XRP's recent price action has drawn attention within the crypto community, as highlighted in a…

2 hours ago

Expert Says Get Ready, XRP Is Gearing Up for Some Big Moves. Here’s why

Recent technical developments in XRP’s chart suggest a potentially bullish trajectory for the cryptocurrency, following…

3 hours ago

Solana Price Stuck in Symmetrical Triangle While this AI Altcoin Eyes a 55,409% Run

The Solana price movements have caught the attention of investors, as it currently trades within…

6 hours ago