JPMorgan’s $4-8B XRP ETF Prediction Now Backed by Senior Bloomberg ETF Analyst

Senior Bloomberg ETF Analyst Eric Balchunas supports JPMorgan’s estimations of first-year XRP and Solana ETF Inflows.

The ability of exchange-traded funds to easily unlock crypto exposure for everyday and institutional investors has made them a major crypto narrative in recent years as crypto investors drool at the thought of these inflows pumping their bags. 

This narrative has only intensified with the success of spot Bitcoin ETFs in 2024, with market participants now setting their sights on altcoins they believe to be next in line. Among the favorites are XRP and Solana.

While bids to launch investment products tied to these assets have yet to be approved, a major American bank has offered insight into how much success they could achieve. These insights have now received support from a senior Bloomberg ETF analyst.

A “Reasonable” Estimate

Senior Bloomberg ETF Analyst Eric Balchunas has shown support for JPMorgan’s estimations that XRP and Solana ETFs will rake in about $14 billion combined in their first year.

In an X post on Tuesday, January 14, he asserted that the estimate was “a pretty reasonable guess.”

JPMorgan is saying that alt-coin ETF will collect $14b in flows in 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. Gotta get the approvals first tho. Story via @isabelletanlee… pic.twitter.com/Rc4rLIsJim

— Eric Balchunas (@EricBalchunas) January 14, 2025

In a Monday, January 13 report, analysts at JPMorgan contended that funds tied to XRP and Solana ETFs could rake in about $14 billion in combined inflows in their first year. This estimate was based on the adoption rate of Bitcoin and Ethereum ETFs.

At the time of the analysis, Bitcoin ETFs held about $108 billion worth of assets, representing 6% of the asset’s nearly $2 trillion market cap. On the other hand, Ethereum ETFs held about $12 billion, roughly 12% of the asset’s approximately $400 billion market cap.

Expecting a similar uptake, XRP ETFs are expected to rake in $4 billion to $8 billion at 3% to 6% penetration, respectively. Solana ETFs, on the other hand, are projected to pull $3 billion to $5 billion.

Wen XRP and Solana ETF Approval?

While JPMorgan notes that the looming administration change and present lack of regulatory clarity may delay the processing of applications to launch XRP and Solana ETFs, it contends approvals are still likely in 2025.

The optimistic view comes as President-elect Donald Trump has thrown his weight behind the crypto industry in the past year and has nominated crypto-friendly Paul Atkins for the role of SEC chair.

At least four asset managers have thrown their hats in the ring to launch an XRP ETF. These include Canary Capital, 21 Shares, Bitwise, and WisdomTree.

On the other hand, at least three firms have shown interest in launching Solana ETFs. They include VanEck, Ark Invest, and Canary Capital.