JPMorgan: ETP on XRP and Solana could attract billions of dollars

The analysis by JPMorgan highlights the strong growth potential of exchange-traded products (ETP) linked to XRP and Solana (SOL), digital assets that could attract between 3 and 8 billion dollars of investments. 

This forecast, announced by Matthew Sigel, Head of Digital Asset Research at VanEck, is based on the success already observed in Bitcoin and Ethereum ETPs, suggesting a significant adoption trend for other assets as well.

ETP on Bitcoin and Ethereum: the road is open to XRP and Solana

The ETPs on Bitcoin already represent a consolidated success, currently holding 108 billion dollars in assets, equal to 6% of the overall market capitalization of the cryptocurrency, which amounts to about 1.874 trillion dollars. 

In the same way, the ETPs on Ethereum recorded a penetration rate of 3% in just six months, reaching 12 billion dollars of assets under management compared to a total market capitalization of 395 billion dollars.

The analysis by JPMorgan is based on these metrics to project future scenarios for ETPs on XRP and Solana, highlighting the potential to attract significant capital flows in the bull and bear cryptocurrency sector.

According to estimates by JPMorgan, the ETPs on XRP and Solana could benefit from substantial inflows if they reached penetration rates similar to those of Bitcoin and Ethereum.

• XRP, with a market capitalization of approximately 146.5 billion dollars, could attract between 4.3 billion dollars (with a penetration rate of 3%) and 8.4 billion dollars (with a rate of 6%).
• Solana, with a capitalization of 90.5 billion dollars, could instead attract flows between 2.7 billion dollars and 5.2 billion dollars.

These projections highlight the possibility that both assets may acquire a significant share of investments from institutional and retail investors through ETPs.

Institutional and retail implications of ETPs on XRP and Solana

The ETP represent a simplified and regulated way to invest in cryptocurrencies, allowing institutional and retail investors to access the market without having to directly manage the custody of the tokens. 

A success similar to that already seen with ETPs on Bitcoin and Ethereum would confirm the growing interest in regulated financial products linked to digital assets.

Furthermore, the potential of XRP could be further strengthened by regulatory developments. 

It is expected that, with the inauguration of the Trump administration, the SEC may dismiss the case against Ripple, favoring the regulatory clarity necessary to boost investor confidence. This prospect would increase XRP’s ability to attract institutional investments.

The analysis by JPMorgan highlights how the adoption rate of ETPs represents a key indicator for measuring institutional investors’ interest in cryptocurrencies.

 If XRP and Solana were able to replicate the success of the ETPs on Bitcoin and Ethereum, they would further strengthen their position in the global crypto market.

The growing importance of ETPs demonstrates how the cryptocurrency sector is maturing, attracting the attention of institutional investors and expanding access to digital investments for a wider audience.

Conclusion

With JPMorgan’s forecasts indicating capital flows between 3 and 8 billion dollars into ETPs on XRP and Solana, these digital assets seem poised to play a leading role in the expansion of the cryptocurrency market. 

The mainstream adoption of these products could contribute to greater stability and sustained growth of the entire crypto ecosystem, attracting more and more institutional and retail investors.