JPMorgan analysts forecast up to $8 billion in inflows for XRP ETFs but warn of limited investor interest in altcoin ETFs beyond Bitcoin and Ethereum. While regulatory hurdles may ease under a Trump administration, the bank remains sceptical about significant demand for these new products, casting doubt on their potential impact on the broader cryptocurrency market.
XRP and Solana ETFs in Focus
The bank estimates that XRP-focused ETFs could attract as much as $8 billion, while Solana ETFs might pull in $3 to $6 billion. However, these figures pale in comparison to the massive capital flows into Bitcoin and Ethereum ETFs. In 2024 alone, Bitcoin ETFs amassed $107 billion, while Ethereum ETFs brought in $12 billion over the past six months.
Despite Ripple’s ongoing legal battle with the SEC, which some analysts believe could end in 2025 and boost XRP’s value, JPMorgan questions whether these altcoin ETFs will gain the same traction as their Bitcoin and Ethereum counterparts.
Demand Concerns Cloud Altcoin ETF Prospects
A key issue is the uncertain demand for these products. Grayscale’s Solana Trust currently holds just $99 million in assets, while its XRP Trust manages a mere $12 million. BlackRock, the world’s largest asset manager, has already decided against pursuing a Solana ETF due to weak investor interest.
Sui Chung, CEO of Kraken-owned CF Benchmarks, also voiced doubts, stating that Solana ETFs “won’t happen on the same basis as Bitcoin and Ether.” While Bitcoin ETFs captured 6% of the asset’s total market value in their first year, and Ethereum ETFs secured 3% in six months, altcoin products have yet to demonstrate comparable demand.
Crypto Market’s Short Attention Span
JPMorgan attributes the lukewarm outlook to the “episodic nature” of the crypto market. Outside of major tokens like Bitcoin and Ethereum, investor sentiment often shifts rapidly, driven by trends and speculative interest. This makes it difficult for altcoin ETFs to sustain attention and meaningful inflows over the long term.
Despite this, companies like Bitwise, VanEck, and 21Shares are still applying for Solana ETFs, hoping to capitalise on future opportunities. Bloomberg ETF expert Eric Balchunas expects a surge of cryptocurrency ETF launches in 2025, though not all are likely to succeed.
Will 2025 Be a Turning Point?
While some hope that a crypto-friendly Trump administration will broaden adoption, JPMorgan’s cautious forecast highlights the challenges ahead for altcoin ETFs. The success of Bitcoin and Ethereum products has yet to translate into sustained interest for other cryptocurrencies, raising questions about the future of XRP and Solana ETFs in a competitive market.
With investor sentiment proving unpredictable, the coming year will determine whether altcoin ETFs can live up to their potential or remain overshadowed by the crypto market’s dominant players.
