JPMorgan projects that exchange-traded products (ETPs) for Solana (SOL) and XRP could attract up to $15 billion in net inflows. Currently, Solana-based ETPs manage approximately $1.6 billion in assets under management (AUM), while XRP-based products hold $910 million. In 2024, these products recorded net inflows of $438 million and $69 million, respectively.
This projection is based on the adoption rates of Bitcoin (BTC) and Ethereum (ETH) ETPs. Bitcoin ETPs attracted $108 billion in their first year, representing about 6% of Bitcoin’s $1.8 trillion market capitalization at the time. Similarly, Ethereum ETPs garnered $12 billion, roughly 3% of Ethereum’s $395 billion market value, within six months of launch. Applying these adoption rates, Solana ETPs could see inflows between $3 billion and $6 billion, while XRP ETPs might attract between $4 billion and $8 billion.
However, regulatory challenges in the U.S. may impact the approval and success of these ETPs. The U.S. Securities and Exchange Commission (SEC) recently declined to approve a Solana-based ETF. Additionally, Ripple Labs, the company behind XRP, is involved in a legal battle with the SEC over whether XRP should be classified as a security. Analysts suggest that ETFs based on Litecoin (LTC) and Hedera (HBAR) might be more likely to gain approval ahead of Solana and XRP, due to their regulatory status.
Despite these regulatory hurdles, the potential for significant inflows into Solana and XRP ETPs underscores growing investor interest in alternative crypto assets and the evolving landscape of cryptocurrency-based investment products.