XRP and Solana ETFs Could Draw $14 Billion, JPMorgan Says

Banking giant JPMorgan (JPM+0.53%) have predicted the next wave of cryptocurrency exchange-traded funds (ETFs) – focusing on Solana and XRP— could experience significant growth if the US Securities and Exchange Commission (SEC) gives the green light.

The bank has predicted that these ETFs could attract 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 gather between $4 billion and $8 billion in net new assets. Matthew Sigel, head of digital assets research at VanEck, shared JPMorgan’s forecasts on social media platform X underscoring how fast new crypto ETFs can grow.

With the inauguration of crypto-friendly President Donald Trump set for next week, investors are anxiously awaiting the approval of Solana and XRP exchange-traded funds (ETFs). Several prominent asset management firms, including Grayscale, 21Shares, Bitwise, VanEck and Canary Capital, have filed for Solana and XRP ETFs. The financial watchdog is expected to make preliminary decisions on these applications before 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, reflecting a 5% gain 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 speed 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. In addition, Solana offers lower transaction fees, increasing its appeal to developers and users.

Thanks to its speed and cost-effectiveness, 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 vital role in securing the network and providing rewards to participants.

The 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 having to buy and hold SOL tokens directly. This would allow traditional investors to take advantage of Solana’s growth potential through a more familiar investment vehicle.

XRP and XRP ETFs: What are they?

XRP is the native token of 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 is important to note that Ripple, the company, operates the network but does not own XRP. Unlike Bitcoin, which has a limited 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, allowing investors to gain exposure to the XRP ecosystem without having to directly purchase and hold XRP tokens.

Crypto ETFs have seen significant success

Bitcoin Exchange Traded Funds (ETFs) recently celebrated their one year anniversary on January 10. In this short period, they totaled $110 billion in assetsaccounting for 6% of Bitcoin’s total $1.8 trillion market cap. Corresponding Ether ETFs reached $12 billion in assetscompared to Ether’s market cap of $395 billion. This remarkable growth highlights the success of crypto ETFs in the past year.

Moreover, analysts are now providing data to suggest so investing in Bitcoin can be more beneficial 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 better than all of them, including the historically successful gold ETFs.