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.

SOL & XRP ETPs Could Attract $3-8bn Each: JPM

ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first… pic.twitter.com/7rApA2z71h

— matthew sigel, recovering CFA (@matthew_sigel) January 13, 2025

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.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

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

The post JP Morgan Predicts Solana (SOL) and XRP ETPs Could Attract $3 to $8 Billion appeared first on Times Tabloid.

JPMorgan Stays Positive

Financial strategists in JPMorgan Chase & Co., “the current phase of deleveraging in cryptocurrencies is at an advanced state and may not last much longer.”

We Are On Twitter: Follow Us

According to a Bloomberg report, JPMorgan noted that a good load of troubles may be behind crypto now. Indicators like the firm’s net leverage metric “suggest that deleveraging is already well advanced,” he added.

More so, it was noted that the failures of many cryptocurrency companies should not be a surprising thing considering the huge price declines seen among tokens.

Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase & Co., added that entities that used higher leverage in the past are now the most vulnerable as crypto prices are heading south. The liquidity crunch at crypto hedge fund Three Arrows Capital “is a manifestation of this deleveraging process,” the report said.

Part of the report noted:

“The current deleveraging cycle may not be very protracted, given the fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion. Notably, venture-capital funding, an important source of capital for the crypto ecosystem continued at a healthy pace in May and June.”

Related: Here’s How LUNA and UST Collapse Caused stETH  De-pegging; Celsius and 3AC Liquidation Problems: Nansen

Crypto Industry Sees Turbulence

Of recent, there has been a substantial number of cases where investors and crypto companies have been hit with big losses and liquidations. 

Additionally, the total market cap of cryptocurrency has recorded a huge decline. As revealed by Coingecko, the total market cap fell to about $930 billion in June ending after rising above $3 trillion in November 2021.

Among the big players suffering a big blow from the turbulent market conditions are Terra, Three Arrows Capital (3AC), and Celsius Network. Precisely, the Terra ecosystem collapsed in May after both of its native tokens (UST and LUNA) fell by over 90%.

Similarly, Celsius Network has been forced to halt withdrawals, swaps, and transfers due to liquidity imbalance. On the other hand, the crypto hedge fund, Three Arrows Capital, has been given a liquidation order by a court as it is currently insolvent.

In another development, crypto exchange FTX granted BlockFi a line of credit and reportedly, FTX wants to acquire the crypto firm. With all of these turmoils in sight, JPMorgan has chosen to stay optimistic claiming that the crypto market downturn will not last any longer.

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

The post JPMorgan: Current Downturn in the Crypto Market Will Soon End appeared first on Times Tabloid.

JPMorgan pointed out that Ethereum’s volume share of NFT trading has fallen from around 95% recorded at the start of 2021 to 80%.

Read Also: Legendary Boxer Mike Tyson Wonders How High Solana (SOL) Price Can Rise

In a research note sent to clients about a week ago, referring to apps built for decentralized finance (DeFi), Panigirtzoglou wrote:

“It looks like, similar to DeFi apps, congestion and high gas fees has been inducing NFT applications to use other blockchains.”

According to the major bank’s findings as stated in the report, the Solana network had been seizing market share from Ethereum in recent weeks.

Read Also: Bank of America: Solana (SOL) Could Beat Ethereum (ETH) To Become Visa of Crypto Space

Panigirtzoglou emphasized that if Ethereum keeps losing ground to rivals blockchain, it would become a big problem for the market value of Ethereum:

“If the loss of its NFT share starts looking more sustained in 2022, that would become a bigger problem for ethereum’s valuation.”

JPMorgan pointed out that Solana is starting to attract NFT developers due to much lower transaction fees compared to Ethereum. In the note, the bank says other networks such as Tezos are also competing in this aspect.

Read Also: Solana Partners with Opera to Make the Browser’s Users have a Wallet with Full DApps Compatibility

However, Ethereum still remains the dominant blockchain in the industry. Ethereum NFT marketplace OpenSea recently reached a valuation of $13.3 billion.

Also in December 2021, $2.5 billion worth of NFT sales were recorded across various blockchains. It’s not a surprise that Ethereum accounted for $2.5 billion of all the NFTs sold. And to cap it all, Ethereum 2.0, a major upgrade expected to boost the scalability of the network, is coming, probably before the end of the year.

Follow us on Twitter, Facebook, and Telegram

The post JPMorgan: Ethereum Is Losing Ground to Solana in the Non-Fungible Token (NFT) Sector appeared first on Times Tabloid.

This inflowing of big money has also been significantly having a positive impact on the price of Ethereum (ETH) over the past couple of months.

Read Also: Largest Ethereum Mining Pool in the World to Stop Serving Miners in China

Data from different crypto analytics platforms show that institutional investors are trying to join the Ethereum bandwagon before the cryptocurrency becomes an important part of traditional finance markets.

Ethereum (ETH) being more valuable than the flagship cryptocurrency has been a top topic for debate in the crypto ecosystem.

Despite the fact that Bitcoin (BTC) is the most popular and valuable crypto asset, JPMorgan analyst is showing that institutional investors are taking more positions in Ethereum rather than Bitcoin.

In recent months, Bitcoin has experienced multiple price crashes, which is, in turn, dissuading institutional investors and making its bullish trend less predictable.

Read Also: Analyst Who Accurately Predicted Current Pullback Says Ethereum Has Bottomed and Ready for New All-Time Highs

Big-money Investors Are Shying Away From Bitcoin Futures

As written by a JPMorgan analyst and reported by Business Insider, Big-money investors have started to shy away from the Bitcoin Futures trade and moving to Ethereum Futures instead, as interest in the largest cryptocurrency drops.

According to the report, in September, Bitcoin Futures on the Chicago Mercantile Exchange traded below the price of an actual Bitcoin.

JPMorgan analyst wrote:

“This is a setback for bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin”

Under healthy demand, futures usually trade at a premium to actual Bitcoin. According to previous JPMorgan research, this occurs because high Bitcoin storage costs and the juicy yields available for passive crypto investing push up futures prices.

Read Also: Coin Bureau Host: Cardano To Trigger Largest Explosion in Crypto innovation Since Ethereum Launch in 2015

However, for now, according to the note, the reverse is the case for Bitcoin. The dynamic has made the current weakness in futures bearish for Bitcoin.

On the other hand, institutional investors have started to pivot to Ethereum steadily since August. According to CME data cited in the note by JPMorgan, over actual ETH prices, the 21-day average Ethereum futures premium surged to 1%, indicating a healthier demand for Ethereum by institutional investors compared to Bitcoin.

Follow us on Twitter, Facebook, Telegram, and Download Our Android App

The post Big-Money Investors Are Dumping Bitcoin (BTC) For Ethereum (ETH) –JPMorgan Analyst appeared first on Times Tabloid.