JPMorgan Estimates Crypto ETFs Could Attract $14 Billion in Inflows

• JPMorgan estimates crypto ETFs for Solana and XRP could attract $14 billion in inflows.
• Bitcoin ETFs manage $108B, representing 6% of Bitcoin’s market capitalization, per JPMorgan.
• Regulatory shifts under Trump administration may accelerate ETF approvals for alternative cryptocurrencies.

JPMorgan Chase & Co. analysts have projected that a proposed set of exchange-traded funds (ETFs) focused on alternative cryptocurrencies could attract inflows of up to $14 billion. The analysts based their estimates on data from existing cryptocurrency ETFs and market adoption rates. The projections hinge on the approval of these ETFs by the U.S. Securities and Exchange Commission (SEC).

According to JPMorgan in a post by Eric Balchunas, the proposed ETFs tracking Solana and XRP could generate significant inflows within the first year of their approval. Solana ETFs are estimated to draw between $3 billion and $6 billion over six to 12 months, while XRP-focused funds could gather $4 billion to $8 billion in the same period.

The estimates are informed by the adoption rates of existing ETFs, such as Bitcoin and Ether funds. Bitcoin ETFs, introduced a year ago, currently manage $108 billion in assets, representing roughly 6% of Bitcoin’s market capitalization. Ether ETFs, launched six months ago, hold $12 billion, a penetration rate of 3% of the coin’s market value.

Despite the optimistic projections, JPMorgan analysts acknowledged the potential for slow progress on ETF approvals beyond Bitcoin and Ether. The analysts noted the impact of administrative changes and ongoing regulatory uncertainty. The SEC received applications in 2023 for funds tracking various cryptocurrencies, including XRP, Solana, and Litecoin.

The changing regulatory landscape could influence the pace of approvals. Recent actions by President-elect Donald Trump, including the appointment of Paul Atkins as SEC Chair, reflect a shift in the administration’s stance toward crypto regulation. The introduction of a new position focused on artificial intelligence and crypto indicates a broader push to accommodate emerging digital assets.

JPMorgan anticipates continued industry interest in launching ETFs for cryptocurrencies other than Bitcoin and Ether. While regulatory progress may take time, the analysts expect more applications to be submitted in 2025.