Solana, XRP ETFs Could Outperform Ethereum ETFs, Says JPMorgan

Banking giant JPMorgan forecasts significant investments in Solana SOL/USD and XRP XRP/USD exchange-traded funds (ETFs) if they receive approval. The report, shared on Jan. 13, suggests these ETFs could outperform Ethereum ETH/USD ETFs in their initial six months.

What Happened: Investors are optimistic about the approval of the first spot Solana and XRP ETFs, especially with a potentially more innovation-friendly regulatory environment anticipated in the U.S. following President-elect Donald Trump‘s inauguration on January 20. JPMorgan estimates Solana could attract $3 billion to $6 billion, while XRP might gather $4 billion to $8 billion in net new assets, Cointelegraph reported on Tuesday.

This prediction aligns with the first anniversary of U.S. spot Bitcoin ETFs, which nearly reached $110 billion in cumulative holdings by Jan. 2. The introduction of new crypto-based ETFs could drive altcoins to unprecedented highs, similar to Bitcoin’s surge after its ETF debut.

However, JPMorgan cautions that altcoin demand remains volatile, making the performance of future crypto-based ETFs uncertain. The U.S. Securities and Exchange Commission is expected to make preliminary decisions on Solana ETF applications by the end of January, with major asset managers like VanEck and Grayscale awaiting outcomes.

Why It Matters: The potential approval of Solana and XRP ETFs could represent a major milestone for the cryptocurrency market. The introduction of U.S. spot-based ETFs has already reshaped global investment flows. Solana, in particular, has seen significant growth, reaching a record high of $264 in November, driven by ETF filings and regulatory optimism.

However, skepticism remains regarding the SEC’s approval of additional crypto ETFs. JPMorgan has previously expressed doubts about the SEC’s willingness to approve ETFs beyond Ethereum, citing concerns over the classification of cryptocurrencies as securities.

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