Introduction
Emerging cryptocurrency-based exchange-traded products (ETPs) may attract significant new investment if approved, according to banking giant JPMorgan. Investors are increasingly betting on the approval of spot Solana and spot XRP ETPs, with expectations of a more innovation-friendly regulatory regime in the U.S. following President-elect Trump’s inauguration on January 20.
JPMorgan’s Report on SOL and XRP ETPs
In a January 13 report shared with Cointelegraph, JPMorgan projected that Solana (SOL) and XRP ETPs may outperform spot Ether ETFs in their first six months of trading. The report stated that when applying "adoption rates" to SOL and XRP, the former could attract roughly $3 billion-$6 billion in net assets, while XRP could gather $4 billion-$8 billion in net new assets.
Performance Projections
SOL and XRP ETPs are projected to attract between $3–$8 billion in net assets. This projection is based on the performance of Bitcoin and Ether spot ETFs, which saw significant growth in their first six months after launching.
Bitcoin ETFs’ Impact
Following the first anniversary of U.S. spot Bitcoin ETFs, new crypto-based ETFs could propel underlying altcoins to new all-time highs. Bitcoin ETFs accounted for about 75% of new investment when Bitcoin recaptured the $50,000 mark on February 15, less than a month after their debut.
Altcoin ETP Adoption Challenges
Despite the high interest in Solana and XRP ETPs, predicting their performance is challenging due to uncertain investor demand. Bitcoin ETFs have a 6% adoption rate, attracting about 6% of Bitcoin’s total market capitalization. Ether ETFs saw a 3% adoption rate during their first six months.
Current Market Landscape
Solana ETFs are nearing the SEC deadline at the end of January, with several major asset managers, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, submitting applications for a Solana ETF. The U.S. Securities and Exchange Commission is expected to review these applications in the coming months.
Conclusion
The regulatory environment surrounding cryptocurrency ETPs is evolving rapidly, offering significant opportunities for investors seeking exposure to innovative assets. With major players like JPMorgan actively researching and projecting potential growth for cryptos such as SOL and XRP, the market landscape is likely to remain dynamic and attracting new participants.