JPMorgan sees up to $8b in XRP ETFs — but warns of broader demand slump

New crypto ETFs are coming, but there’s 1 problem: fewer privation them.

Analysts astatine JPMorgan spot constricted appetite for caller cryptocurrency exchange-traded funds beyond Bitcoin and Ethereum — contempt expectations that Trump volition assistance regulatory hurdles.

“We don’t spot capitalist involvement oregon request large capable to marque these aboriginal altcoin ETP launches meaningful for the cryptocurrency ecosystem,” JPMorgan analysts wrote successful an capitalist enactment connected January 13.

The slope foresees $3 to $6 cardinal flowing into Solana ETFs, portion Ripple’s XRP could pull arsenic overmuch arsenic $8 billion. Other analysts deliberation that 2025 could beryllium the twelvemonth Ripple’s ineligible skirmish with the SEC ends, sending XRP soaring.

But those figures are lone a fraction of the superior that flowed into Bitcoin and Ethereum ETFs.

Bitcoin ETFs accumulated $107 cardinal successful 2024, portion investors plowed $12 cardinal into Ethereum successful the past six months.

JPMorgan’s tepid outlook hinders expectations for 2025 — particularly with galore advocates banking connected a affable Trump medication to assistance broaden crypto adoption successful the US.

The bank’s less-than-bullish forecast besides challenges the presumption that Bitcoin’s favour with Wall Street volition construe to different cryptocurrencies.

Uncertain demand

Will determination beryllium capable interest? JPMorgan isn’t sure.

“The cardinal question present remains the uncertainty of capitalist request for further products,” analysts wrote.

BlackRock has already declined to prosecute a Solana ETF owed to request concerns. Other pundits echoed the sentiment.

“Solana ETFs are not going to hap — oregon astatine least, it won’t hap connected the aforesaid ground arsenic however Bitcoin and Ether happened,” Sui Chung, CEO of Kraken-owned scale supplier CF Benchmarks, previously told DL News.

Bitcoin ETFs captured 6% of Bitcoin’s full marketplace worth successful their archetypal twelvemonth — marking the best debut successful ETF history — and Ethereum ETFs topped 3% of that network’s worthy successful six months.

Meanwhile, request for Solana and XRP products connected the marketplace remains low. Grayscale’s Solana spot holds conscionable $99 cardinal successful assets, and its XRP spot manages lone $12 million.

That said, big players are inactive vying for a Solana ETF. Bitwise, the 5th largest Bitcoin ETF provider, has applied for one, alongside VanEck and 21shares.

Episodic nature

JPMorgan blames the short-term attraction span of crypto investors.

“Outside of a fewer superior tokens, the episodic quality of the crypto marketplace is driven by varying capitalist sentiment and trendy caller coins that whitethorn seizure incremental attraction for a constricted time,” the analysts wrote.

Even still, much products are coming whether investors privation them oregon not.

Eric Balchunas, ETF adept astatine Bloomberg, said successful precocious 2024: “We expect a question of cryptocurrency ETFs adjacent year, albeit not each astatine once.”

Pedro Solimano is simply a Markets Correspondent astatine DL News. Got a tip? Email him astatine psolimano@dlnews.com.