Solana and XRP are gaining momentum with the upcoming launch of their own ETFs. JPMorgan predicts a significant influx of capital. What are the challenges and outlook for these two cryptocurrencies in the coming months and years?
Written by Léa - Last updated on 01/15/2025 at 10:30 by Léa
While the success of Bitcoin ETFs is undeniable, altcoin ETFs are the next inevitable step. Since the introduction of the first Bitcoin and Ethereum ETFs in the United States, the interest in these publicly-traded products has been steadily increasing.
According to JPMorgan, cryptocurrency-based ETFs such as Solana (SOL) and XRP could follow the same trend and attract billions of dollars in investments in the coming months. Moreover, Solana has already secured ETFs in several countries, including Brazil.
Given that Bitcoin is seeing inflows of up to $800 million per day, these XRP and SOL ETFs could lead to a massive capital influx. JPMorgan suggests that between 3 and 6 billion dollars in net assets could flow into the Solana ecosystem, with XRP capturing between 4 and 8 billion.
This would clearly greatly accelerate Solana and XRP’s progress in the months ahead, especially as analysts predict significant price increases for both tokens alongside the resurgence of crypto assets and Bitcoin.
Analysts believe that the riskier nature of Solana and XRP should not deter investors but instead attract them, as both tokens have significant potential in the sector. While BTC and Ethereum represent 6% and 3% of the industry’s total share, SOL and XRP have the potential to claim a significant portion of the market :
“Apart from major tokens like BTC, ETH, and SOL, the episodic nature of the crypto market is driven by investor sentiment fluctuations and the emergence of new ‘trendy’ coins that momentarily capture attention,” JPMorgan points out.
While XRP benefits from momentum related to Donald Trump and favorable regulations, Solana remains a top performer in 2024. Despite recent price fluctuations, Solana continues to be one of the most promising assets for the year.
Several major asset managers, including Grayscale, VanEck, and 21Shares, have filed applications with the SEC to launch an ETF for SOL. The final decision is expected by the end of January, just days after the inauguration of President-elect Donald Trump.
“Approval of an ETF in the United States would have a significant positive impact on Solana’s price since this possibility is not yet priced in,” says Alejo Pinto, founder of the Solana-based Lumio network.
Although a massive unlock of $263 billion worth of SOL tokens is scheduled for March 1st, SOL seems poised to surpass the $1000 threshold in the coming months.
In conclusion, SOL and XRP stand to benefit greatly from these ETFs. Investors will be eager for new opportunities with higher risks but also potentially greater rewards.
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Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the InvestX.fr site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.
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