JP Morgan says XRP and Solana ETFs could attract $14 billion

Banking giant JP Morgan (JBM+0.71%) has expected The next wave of cryptocurrency exchange-traded funds (ETFs) – with a focus on Solana and XRP– Could see significant growth if the US Securities and Exchange Commission gives the green light.

The bank expects these ETFs to attract up to $14 billion in investments during their first year. Specifically, Solana ETFs are expected to attract between $3 billion and $6 billion, while XRP ETFs could raise between $4 billion and $8 billion in net new assets. Matthew Siegel, Head of Digital Assets Research at VanEck, subscriber JPMorgan forecasts on the social media platform X, confirming how quickly new cryptocurrency ETFs can grow.

With the inauguration of crypto-friendly President-elect Donald Trump next week, investors are eagerly awaiting approval of Solana and XRP exchange-traded funds (ETFs). Several prominent asset managers, including Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital, have filed for Solana and XRP ETFs. The Financial Supervisory Authority is expected to make preliminary decisions on these applications by the end of January.

Solana and XRP are among the top 10 cryptocurrencies by market cap. Currently, Solana is trading at $186, reflecting a 5.3% gain, while XRP is trading at $2.50, reflecting a 5% gain. Increase in the last 24 hours.

Solana and Solana ETFs: What are they?

Founded in 2017, Solana It is a high-performance blockchain network designed to support… Decentralized applications or dApps. Solana is known for its speed, and can process transactions at a much faster rate than other blockchains, such as Ethereum. While Ethereum handles around 12-15 transactions per second, Solana claims to support up to 50,000 transactions per second, making it one of the fastest blockchain networks in the space. Additionally, Solana offers lower transaction fees, which enhances its appeal to developers and users.

Thanks to its speed and cost-effectiveness, Solana has gained a reputation as a formidable competitor to Ethereum – Solana has often been dubbed the “Ethereum Killer.” Its native token, Solana, or SOL, plays a crucial role in securing the network and providing rewards to participants.

If approved, the Solana ETF would be an exchange-traded fund that tracks Solana’s price, offering investors a way to gain exposure to the Solana ecosystem without having to purchase and hold SOL tokens directly. This would allow traditional investors to capitalize on Solana’s growth potential through a more familiar investment vehicle.

XRP and XRP ETFs: What are they?

XRP It is the native token of XRP Ledger, an open source blockchain. It is used by the Ripple payment network to facilitate cross-border transactions and is designed to act as a bridge currency. It is important to note that Ripple, the company that operates the network, does not own XRP. Unlike Bitcoin, which has a maximum supply of 21 million coins, XRP has a total supply of 100 billion tokens.

If the XRP ETF receives SEC approval, it will track the price of XRP, offering investors a way to learn about the XRP ecosystem without having to purchase and hold XRP tokens directly.

Cryptocurrency ETFs have been a huge success

Bitcoin exchange-traded funds (ETFs) I recently celebrated them 1st anniversary on January 10th. In this short period, They have amassed $110 billion in assetswhich represents 6% of Bitcoin’s total market capitalization of $1.8 trillion. Similarly, Ethereum ETFs receipt $12 billion in assetsCompared to Ethereum’s market cap of $395 billion. This remarkable growth highlights the success of cryptocurrency ETFs over the past year.

Moreover, analysts are now providing data to suggest this Investing in Bitcoin may be more beneficial than investing in gold. Over the past 30 years, more than 5,000 exchange-traded funds have been launched across various sectors Bitcoin ETFs He owns It outperformed everyone, including the historically successful gold ETFs.