- Bloomberg senior analyst agrees with JPMorgan’s prediction that the spot SOL ETF and spot XRP ETF could have a combined amount of $14 billion in assets in their first year of approval.
- The analyst earlier predicted a possible delay for the SOL and XRP ETFs due to legal concerns regarding their securities status.
JPMorgan earlier highlighted that the spot XRP and SOL Exchange Traded Funds (ETFs) could attract a collective amount of $14 billion within a year after approval. This assessment was based on the performance of the Bitcoin (BTC) and Ethereum (ETH) ETF inflows.
In the first year of the Bitcoin ETF operation, $108 billion in assets were recorded, representing 6% of the market cap at that time. Meanwhile, Ether ETFs had $12 billion in assets, marking 3% of its market cap. Applying a similar adoption, JPMorgan estimated that XRP and Solana ETF could reach between $4-$8 billion and $3-$6 billion in assets, respectively, in their first year, per a CNF report.
Supporting this estimation to a larger extent, Senior Bloomberg ETF Analyst Eric Balchunas has predicted that both assets could rake in a collective amount of $14 billion in their first 12 months.
JPMorgan is saying that alt-coin ETF will collect $14b inflows in the first year, $3-6b for Solana, and $4-8b for XRP. My team hasn’t made any formal predictions yet but this seems like a pretty reasonable guess.
Concerning the approval, Balchunas pointed out in December that there could be a wave of green lights in 2025. However, he explained that the XRP ETF and the SOL ETC could be delayed. His reason was that both assets had been labeled as securities in pending lawsuits. Meanwhile, Litecoin (LTC), which was forked from Bitcoin, and Hedera (HBAR), which has not yet been listed as a security, could get approval soon.
More on the XRP and SOL ETF?
Prior to this expected approval, Balchunas highlighted that the SEC could first approve the ETF applications that combine the top two largest-cap cryptos – Bitcoin and Ethereum. Per our research, Bitwise, Hashdex, and Franklin Templeton have already filed for this ETF product. Contrary to this position, Ripple president Monica Long believes that XRP could be the next in line for approval after BTC and ETH.
I think that we will see more various crypto spot ETFs this year coming out of the US. I think XRP is likely to be next in line after Bitcoin and ETH.
Throwing more light on this, she highlighted that the new US Securities and Exchange Commission (SEC) administration, expected to be chaired by Paul Atkins, could end the Ripple vs SEC litigation and accelerate the ETF approval process.
Amid the backdrop of this, XRP has made an incredible surge of 19% in the last seven days to trade at $2.7 at press time.
According to a Wall Street analyst, the asset could hit $100 this year. As mentioned in a recent CNF report, the launch of Ripple’s first stablecoin RLUSD, coupled with its significant surge in trading volume, is expected to fuel this growth.
Adding to this position, an XRP enthusiast identified as Chad Steingraber also estimated that the price could hit $20,000. According to a CNF report on this thesis, Steingraber based his prediction on multiple factors, including the limited supply of the asset, demand and supply, and market appreciation.
