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JP Morgan projects that, upon approval, XRP and Solana ETFs could each attract between $3 billion and $8 billion in investments.
Matthew Sigel, Head of Digital Assets Research at VanEck, shared these projections today on X. The report highlights the potential impact of ETF approvals on XRP’s and Solana’s market caps and prices.
Projected Inflows and Market Impact
For context, JP Morgan’s report compares the adoption rates of Bitcoin and Ethereum ETFs, which have witnessed comparable successes following their approvals.
The bank pointed out that Bitcoin ETFs amassed $108 billion in assets, representing 6% of Bitcoin’s market cap within their first year. Similarly, Ethereum ETFs reached $12 billion in assets, accounting for 3% of Ethereum’s market cap in six months.
JP Morgan applied these rates to XRP and Solana ETFs. Notably, for XRP, with a market cap of $146.5 billion at the time of the report, a 3% inflow, which compares to Ethereum’s inflows, could introduce an additional $4.3 billion, elevating the market cap to $150.8 billion.
Further, a 6% inflow, comparable to Bitcoin’s, might add $8.4 billion, resulting in a $154.9 billion market cap. Now, given the prevailing circulating supply of 57.5 billion tokens, XRP’s price could rise from the current $2.55 to between $2.62 and $2.69.
Meanwhile, for Solana, with a market cap of $90.5 billion, a 3% inflow comparable to Ethereum’s inflows could bring in an additional $2.7 billion, raising the market cap to $93.2 billion.
However, a 6% inflow, which compares to Bitcoin’s performance, might contribute $5.2 billion, leading to a $95.7 billion market cap. Considering a circulating supply of 484 million tokens, SOL’s price could increase from the current $185.8 to between $192.5 and $197.7.
XRP and Solana ETF Potentials
Notably, the potential approval of XRP and Solana ETFs is still under consideration. The U.S. Securities and Exchange Commission (SEC) has been reviewing various ETF applications, with recent developments suggesting a more favorable stance.
In late 2024, several firms, including WisdomTree, 21Shares, Canary Capital, and Bitwise, submitted applications for XRP ETFs. Similarly, there has been a surge in filings for Solana ETFs. The SEC is expected to make initial decisions on these filings by Jan. 25, 2025.
Following the success of its Bitcoin ETF, VanEck was one of the first asset managers to file for a spot Solana ETF in June 2024. Additionally, Grayscale has applied to convert its Solana Trust Fund into an ETF, with a review deadline set for Jan. 23, 2025.
The crypto market experienced massive growth, with Bitcoin’s price surpassing $100,000 following the introduction of spot Bitcoin ETFs in 2024. This success spurred interest in ETFs for other crypto assets, including Ethereum, Solana, and XRP.