cryptoglobe.com
The launch of spot Solana (SOL) and XRP exchange-traded products could eclipse the performance of established exchange-traded funds (ETFs) offering exposure to bitcoin and ether in their first few months of trading, according to a recent JPMorgan report.
The report, as reported by Cointelegraph, highlights the volatile nature of investor interest in altcoins, noting that the “episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time.”
The report adds that tokens with “limited depth” are unlikely to sustain a successful exchange-traded product even if they were to attract significant inflows in the first few months.
Still, JPMorgan analysts see SOL exchange-traded products “attracting roughly $3 billion-$6 billion of net assets and XRP gathering $4billion-$8billion in net new assets.” The predictions are based on potential adoption rates being similar to those seen by spot bitcoin and ether funds.
The U.S. Securities and Exchange Commission (SEC) is set to rule on several spot Solana ETF applications before the end of the month, with various asset managers including VanEck, Grayscale, 21Shares, Canary Capital, and Bitwise looking to launch such a fund.
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