J.P. Morgan predicted that if approved, the XRP spot exchange-traded fund(ETF) could attract approximately $3 billion and $8 billion in new investments. More investors are reportedly anticipating the approval of the first spot XRP and spot Solana exchange-traded funds.
The estimated inflows are based on the performance of Bitcoin and Ethereum ETFs after their launch last year. According to Coinmarketcap, ETFs make up approximately 8% of Bitcoin’s total market value, while Ethereum ETFs make up 3%.
U.S. President-elect Donald Trump’s inauguration further fuels the speculation as forelooking investors position themselves for friendlier crypto policies in his regime.
J.P Morgan backs SOL and XRP ETPs for investments
On Jan 13, JP Morgan predicted that Solana and XRP’s ETFs could surpass spot Ether ETF’s performance within six months after their approval.
“When applying these so-called “adoption rates” to SOL and XRP, we see SOL attracting roughly $3 billion-$6 billion of net assets and XRP gathering $4 billion-$8 billion in net new assets,” said J.P Morgan.
Ripple’s president, Monica Long, expressed her belief that XRP ETPs could be next in line for approval in the U.S. Long also noted that various companies had filed for a spot XRP ETF, adding that she expected the approvals to accelerate in 2025.
Some companies that are reportedly competing to introduce these ETPs include Wisdom Tree and Bitwise.
Ripple’s CEO, Brad Garlinghouse, also expressed his confidence in the approval of a SPOT XRP ETF. However, he noted that the Securities Exchange Commission (SEC) may approve other token ETFs, such as Litecoin, before XRP.
The SEC has an ongoing case against Ripple; however, industry players speculate that the new administration under Paul Atkins might drop the suit.
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