The launch of Bitcoin ETFs last year set a new benchmark for crypto investment vehicles, amassing $50 billion in assets within a year.
While analysts at JP Morgan foresee a sizable market for Solana and XRP ETFs, they predict these funds will not replicate Bitcoin’s record-breaking success.
Altcoin ETF Projections
In a report published Monday, JP Morgan analysts estimated that XRP ETFs could attract $3 to $6 billion in investments, while Solana ETFs might draw $4 to $8 billion.
Despite these figures, the report highlighted that altcoin ETFs are unlikely to match the scale of Bitcoin or Ethereum exchange-traded products (ETPs).
“Bitcoin remains the favored crypto token to trade and own, both in spot and ETP form,” the analysts noted.
Altcoins in the ETF Market
XRP and Solana currently rank as the third and sixth largest cryptocurrencies by market cap, trailing Bitcoin and Ethereum.
Although their inclusion in ETFs signals growing institutional interest, these funds are expected to remain smaller than their Bitcoin and Ethereum counterparts.
The report also pointed to the “episodic nature” of the crypto market, driven by fluctuating investor sentiment and trends surrounding new coins.
ETF Filing Activity
Asset managers like Grayscale, VanEck, and Bitwise have filed paperwork for XRP and Solana ETFs. Grayscale, which previously converted its Bitcoin and Ethereum trusts into ETFs, has proposed a similar move for its Digital Large Cap Fund, which includes Solana, XRP, and other major cryptocurrencies.
A Tough Act to Follow
Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust, have set a high bar for altcoin funds. Ethereum ETFs, launched shortly after Bitcoin ETFs, have struggled to achieve the same level of inflows.
While Solana and XRP ETFs could collectively manage billions in assets, their performance will likely depend on market sentiment and the broader adoption of altcoin investment products.
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