According to the latest report from JP Morgan, ETFs for Solana and XRP may attract billions of USD in investment, but it remains difficult to achieve success like Bitcoin ETF.
Predictions About the Appeal of Solana and XRP ETF
The research team at #JPMorgan stated that the ETFs for Solana and XRP have the potential to attract between 4 to 8 billion USD and 3 to 6 billion USD in investment, respectively. However, these figures are still much lower than the spectacular growth of Bitcoin ETF, which has reached a value of 50 billion USD in assets under management (AUM) in just its first year.
The main reason given is that Bitcoin remains the top choice for both spot trading and investing through ETFs, while #solana and $XRP are just altcoins and have not achieved the same level of widespread acceptance.
Current Status and Prospects of Altcoin ETF
Both Solana and XRP are currently in the top 10 largest cryptocurrencies in the market, ranked 6th and 3rd by market capitalization, respectively. Many large organizations such as Grayscale, VanEck, and Bitwise have applied for approval of ETF funds for these two coins.
However, JP Morgan believes that even if these funds are approved, the managed capital will only reach 'billions of USD', significantly lower than Bitcoin and Ethereum ETFs, which dominate due to their superior popularity.
Challenges from the Success of Bitcoin ETF
Bitcoin ETF, especially BlackRock's product (iShares Bitcoin Trust), has become the largest cryptocurrency investment fund with a record asset volume in its first year of operation. In contrast, Ethereum ETFs launched later have seen much slower growth.
According to JP Morgan, the main reason lies in investor sentiment in the cryptocurrency market, which often changes rapidly according to trends and the prominence of new assets.
Conclusion
Although Solana and XRP ETFs could attract billions of USD, this appeal is hard to match with Bitcoin #etf which has already set a new standard for success in cryptocurrency investment.
Risk warning: The cryptocurrency market is highly volatile, and related ETF investments may not be suitable for all investors. Please consider carefully before participating.