The cryptocurrency market expects cryptocurrency ETFs to be unblocked with the Donald Trump administration. In this context, ETFs for Solana and XRP in particular are expected to hit the market quickly. JP Morgan analysts explained that the expected Solana and XRP ETFs could attract a large amount of investment. However, they are unlikely to catch up with the Bitcoin boom.
JP Morgan: Solana and XRP ETFs will attract funds, but…
As you know from Kriptokoin.com, spot Bitcoin ETFs were launched around this time last year. The success of Bitcoin ETFs has been unprecedented. According to analysts at America’s largest bank, there is a market for more crypto funds. But repeating this level of prosperity will be difficult. A group of researchers at JP Morgan said in their latest report that the Solana and XRP ETFs could attract billions of dollars worth of cash from investors, respectively.
Still, the analysts noted that the best altcoin vehicles will lag far behind Bitcoin exchange-traded products or ETPs. According to analysts, XRP ETFs could attract $3 to $6 billion in investments. In addition, Solana ETFs could attract between $4 billion and $8 billion. Analysts made the following assessment in the report in question:
Regardless of the exact figure, we think that the Solana and XRP ETFs) will match, if not fall below, Ethereum ETP expectations due to their altcoin status and similarly Bitcoin continuing to be the preferred crypto token to trade and own in both spot and ETP form. (…) Even if the Solana and XRP funds are approved, they will manage billions of dollars in assets under management and will be much smaller than their Bitcoin and Ethereum counterparts.
“The crypto market is driven by new trendy coins!”
XRP and Solana are the third and sixth largest cryptocurrencies by market capitalization, respectively. Bitcoin and Ethereum are the top two, respectively. A number of asset managers, including Grayscale, VanEck and Bitwise, have filed paperwork for XRP and Solana crypto funds. It will be hard to match the success of the Bitcoin ETFs launched in January after the SEC gave them the green light to trade on exchanges. BlackRock’s iShares Bitcoin Trust, a Bitcoin investment vehicle, reached $50 billion in assets in its first year.
Ethereum ETFs also hit the market last year. But they have been much slower to attract withdrawals than their in-demand Bitcoin counterparts. JP Morgan analysts added that “the episodic nature of the crypto market is being driven by changing investor sentiment and new trendy coins that can capture growing interest for a limited time.”
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