New Solana and XRP exchange-traded funds could attract up to $13.6 billion in fresh investment within six to 12 months if approved, according to a JPMorgan research note shared with The Block on Tuesday.
The analysts estimate that Solana-based products could bring in between $2.7 billion and $5.2 billion, while XRP-based ETFs could see inflows ranging from $4.3 billion to $8.4 billion, depending on regulatory developments and investor interest.
"Progress on [ETFs] beyond bitcoin and ether has been slow — if not halted altogether — given the lack of regulatory clarity around altcoins particularly at the SEC and CFTC," they said. However, "the new administration and a new SEC chairman opens the door for new opportunity in cryptocurrency innovation," added the JPMorgan analysts.
JPMorgan's note offers insight for market watchers eager to gauge the potential performance of the next wave of crypto-based ETFs. Issuers such as VanEck, 21Shares, Bitwise, WisdomTree and Canary Capital are aiming to roll out altcoin ETFs later this year.
The analysts, however, noted that "applications submitted for SOL, XRP, HBAR, LTC tokens ... have yet to gain traction with the SEC." They suggested that a new SEC chair will likely be confirmed in the next three to six months.
While the launch of SOL and XRP funds would be a boon to each token's ecosystem, JPMorgan's analysts expect both that the "next wave of cryptocurrency" ETFs will not be as meaningful as the first wave, and there will be "limited demand" compared to the bitcoin and ether products, which began trading about a year ago.
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