JPMorgan sees up to $8b in XRP ETFs — but warns of broader ...

New crypto ETFs are coming, but there’s one problem: few want them.

Analysts at JPMorgan see limited appetite for new cryptocurrency exchange-traded funds beyond Bitcoin and Ethereum — despite expectations that Trump will lift regulatory hurdles.

“We don’t see investor interest or demand great enough to make these future altcoin ETP launches meaningful for the cryptocurrency ecosystem,” JPMorgan analysts wrote in an investor note on January 13.

The bank foresees $3 to $6 billion flowing into Solana ETFs, while Ripple’s XRP could attract as much as $8 billion. Other analysts think that 2025 could be the year Ripple’s legal skirmish with the SEC ends, sending XRP soaring.

But those figures are only a fraction of the capital that flowed into Bitcoin and Ethereum ETFs.

Bitcoin ETFs accumulated $107 billion in 2024, while investors plowed $12 billion into Ethereum in the last six months.

JPMorgan’s tepid outlook hinders expectations for 2025 — especially with many advocates banking on a friendly Trump administration to help broaden crypto adoption in the US.

The bank’s less-than-bullish forecast also challenges the assumption that Bitcoin’s favour with Wall Street will translate to other cryptocurrencies.

Uncertain demand

Will there be enough interest? JPMorgan isn’t sure.

“The key question here remains the uncertainty of investor demand for additional products,” analysts wrote.

BlackRock has already declined to pursue a Solana ETF due to demand concerns. Other pundits echoed the sentiment.

“Solana ETFs are not going to happen — or at least, it won’t happen on the same basis as how Bitcoin and Ether happened,” Sui Chung, CEO of Kraken-owned index provider CF Benchmarks, previously told DL News.

Bitcoin ETFs captured 6% of Bitcoin’s total market value in their first year — marking the best debut in ETF history — and Ethereum ETFs topped 3% of that network’s worth in six months.

Meanwhile, demand for Solana and XRP products on the market remains low. Grayscale’s Solana trust holds just $99 million in assets, and its XRP trust manages only $12 million.

That said, big players are still vying for a Solana ETF. Bitwise, the fifth largest Bitcoin ETF provider, has applied for one, alongside VanEck and 21shares.

Episodic nature

JPMorgan blames the short-term attention span of crypto investors.

“Outside of a few primary tokens, the episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time,” the analysts wrote.

Even still, more products are coming whether investors want them or not.

Eric Balchunas, ETF expert at Bloomberg, said in late 2024: “We expect a wave of cryptocurrency ETFs next year, albeit not all at once.”

Pedro Solimano is a Markets Correspondent at DL News. Got a tip? Email him at psolimano@dlnews.com.