JPMorgan's ambitious XRP and SOL predictions

JPMorgan's expectation for XRP and SOL products to be introduced to traditional markets through stock exchange traded funds is high.

Exchange-traded funds (ETFs), which enable traditional market participants, including Wall Street, to buy Bitcoin from the spot market without being tied to any cryptocurrency exchange, ushered the market into 2023 with a rise. As a reminder, after the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), the market witnessed an influx of liquidity.

Spot Bitcoin ETFs raised $108 billion

In the past year, the value of the Bitcoins collected by companies through spot Bitcoin ETFs has reached nearly $108 billion. The spot Bitcoin ETF product launched by BlackRock, the world's largest asset management company, in the U.S. alone, held 542,000 BTC (valued at approximately $51.5 billion as of the writing of the news). With a 47.9% share, BlackRock has thus risen to become the largest ETF issuer in the U.S. market.

The US regulatory agency SEC had approved not only spot Bitcoin but also spot Ether exchange-traded funds towards the end of last year. Now, all eyes are on XRP, which has risen to become the world's third largest cryptocurrency in terms of market value, and SOL, the cryptocurrency of the Solana blockchain.

According to the information note shared by JPMorgan with Cointelegraph, the bank stated that it expects approval for both XRP and SOL-based exchange-traded funds (ETFs) this year and shared its financial projections.

"Solana attracts $6 billion, XRP attracts $8 billion"

In the note shared with the press dated January 13, it was stated that approximately 3 to 6 billion dollars of money inflow will be seen in the purchase of SOL ETFs in the new year, while it is expected that a net asset accumulation of between 4 and 8 billion dollars will occur in XRP.

It is known that many companies are waiting for Solana ETFs. So far, many major asset managers, including VanEck, Grayscale, 21Shares, Bitwise and Canary Capital, have applied for Solana ETFs.

The US Securities and Exchange Commission is expected to make a preliminary decision on these applications before the end of January. Grayscale's application will end on January 23, while other applicants are awaiting a decision until January 25.

Alejo Pinto, founder of the Layer-2 network Lumio on Solana, said that the approval of the ETF could significantly affect the price of Solana (SOL).

"The approval decision will have a positive impact on the price of SOL"

"Because the uncertainty still persists, approval of an ETF from the US would have a positive impact on the SOL price as it is currently not priced in due to the low probability."

On the other hand, there are also developments in the XRP side. Among the ETF issuers who applied to the SEC, there are major companies such as WisdomTree, Bitwise, Canary Capital, 21Shares, and Grayscale. However, there has been no response from the SEC regarding these applications yet.

The optimistic views around both XRP and SOL exchange-traded funds are based on the crypto-friendly promises of Donald Trump, the newly elected president of the United States. Indeed, crypto was one of the cornerstones of Trump's election campaign, and he made ambitious statements for both Bitcoin and the crypto sector as a whole. Following Trump's election as the 47th president of the United States, in which he announced that he would declare Bitcoin as a reserve and include crypto-friendly names, BTC reached an all-time high.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making decisions.