Bitcoin ETFs Set the Bar: Can Solana and XRP ETFs Follow Suit?
Launched at this time last year, the Bitcoin ETFs had exceptional success. Even though it will be hard to replicate that degree of success, analysts at America’s largest bank say there is a market for more cryptocurrency funds.
A group of JP Morgan researchers claimed in a report released on Monday that investors might withdraw billions of dollars from Solana and XRP ETFs, respectively. The researchers said that XRP ETFs might attract $3 to $6 billion in investment, while Solana products could attract between $4 and $8 billion. However, they added that vehicles for popular altcoins would still fall far short of Bitcoin exchange-traded products, or ETPs.
Regardless of an exact number, we think (Solana and XRP) will match if not fall below Ethereum ETP expectations given their altcoin status and, similarly, that Bitcoin remains the favored crypto token to trade and own both in spot and ETP form,
the report
Solana and XRP Rank High by Market Cap but Lag in ETF Prospects
Even if approved, Solana and XRP funds would manage billions of dollars in assets under management, which is far less than their counterparts in Bitcoin and Ethereum, it further stated. By market capitalization, Solana and XRP are third and sixth, respectively. Ethereum and Bitcoin are ranked first and second, respectively.
With BlackRock’s iShares Bitcoin Trust, the largest cryptocurrency investment vehicle, reaching $50 billion in assets in its first year, it would be extremely difficult to match the success of the Bitcoin ETFs, which were introduced in January after receiving approval from the SEC to trade on stock exchanges. Compared to their highly sought-after Bitcoin counterparts, Ethereum ETFs have been significantly slower to attract investors since they were introduced to the market last year.
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