JPMorgan Issues Major Solana and XRP ETF Predictions: Details

Analysts at JPMorgan are optimistic that introducing Solana (SOL) and XRP Exchange Traded Funds (ETFs) could inject up to $8 billion into the assets.

Matthew Sigel, Head of Digital Assets Research at VanEck, recently highlighted this stance in an X post.

The JPMorgan Inflow Forecast

He said that Bitcoin ETP assets, which are approximately $108 billion, make up 6% of the total Bitcoin market cap.

It is worth noting that the market cap of the flagship cryptocurrency has successfully risen to $1.85 trillion, just one year after the ETPs’ went live in the US.

In like manner, Ethereum ETP assets, valued at $12 billion, have a 3% penetration rate of the total ETH market cap, now at $373 billion. While this rate is much lower than Bitcoin’s, the Ethereum ETF launch is only about 6 months old.

Based on these numbers that reflect the performance of BTC and ETH ETFs, it is believed that the so-called “adoption rates” to SOL could attract between $3-6 billion of new net assets.

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Similarly, the JPMorgan analysts hinted that XRP ETFs can pull in around $4-8 billion in net new assets.

Ripple’s Monica Long already sees the possibility that XRP will be next in line to receive the US Securities and Exchange Commission’s (SEC) approval.

Prospects of Approval of Crypto ETF Products

So far, investment asset managers like Bitwise, Canary Capital, and WisdomTree have taken a significant step by filing for XRP ETFs.

This aligns with Ripple CEO’s prediction that the market will welcome an influx of applications. Last year, Brad Garlinghouse stated that he believes the adoption of XRP in TradFi will continue to pick up pace.

His statement came after Bitwise submitted its filing with the SEC.

Grayscale is also expected to join the train in the future. Garlinghouse noted that the launch of an XRP ETF is feasible and inevitable.

He made this statement judging by the trend of emerging markets for digital assets. Till now, the SEC’s stance on the applications remains unclear.

The regulator is still in between its lawsuit with Ripple on the status of XRP.

On this premise, the approval may take a few months or even years, depending on what will change new leadership takes over.

The crypto community is concerned because any legal change could impede such advancements. Proponents like Garlinghouse remain hopeful about the future of XRP ETFs.

In his opinion, increasing XRP ETF applications indicates increased confidence in the asset’s legal clarity.

Implications For Price

Should the much-anticipated approval come, it might positively impact the price of XRP.

At the time of this writing, XRP price was trading for $2.53, corresponding with a 0.42% increase in the last 24 hours. As of January 12, the coin’s price had a massive slump, fueled by the broader market selloff.

Since then, XRP has recorded a technical setup that suggests an impending bullish breakout.

Experts believe XRP can return to $3.66 if it breaks from its current descending channel. This potential move is based on rising buy pressure, expanding XRP near crucial resistance levels.

Solana trades at $181.76 but has encountered a 3.6% dip in line with the market trend. Beyond the projections from JPMorgan analysts, VanEck also foresees an upside for SOL price in the near future.