Why JPMorgan Thinks Solana ETFs Won’t Hit as Hard as Bitcoin, Ethereum Funds

U.S. exchange-traded funds giving traders Solana publicity will wrestle to interrupt data, JPMorgan analysts stated this week.

Extra Solana ETFs are anticipated to hit U.S. markets within the close to future because the Securities and Change Fee mulls purposes, however “fatigue” from traders and a extra favorable notion of Ethereum is more likely to hinder inflows into the merchandise, researchers wrote in a Wednesday report.

Asset managers have filed a protracted checklist of altcoin ETF purposes following the roaring success of spot Bitcoin and Ethereum funds, which debuted within the U.S. final yr. However the banking big does not count on the identical type of demand as these funds noticed.



“Spot Solana ETFs are much less more likely to achieve important inflows,” the report stated. “Solana will not be perceived by traders the identical means as Ethereum as the primary DeFi/sensible contract cryptocurrency.”

It added: “Second, there’s more likely to be investor fatigue with a number of crypto spot ETFs being launched.”

The report additional famous that crypto treasuries—corporations that purchase belongings like Bitcoin and Solana so traders can get publicity through fairness—may also divert cash away from SOL ETFs. Nonetheless, the analysts predicted Solana ETFs may “doubtlessly see round $1.5 billion of internet inflows throughout their first yr.”

Buyers threw almost $36 billion on the U.S. spot Bitcoin ETFs in inflows of their first yr, whereas their Ethereum counterparts obtained $8.7 billion after one yr of buying and selling.

The SEC gave the inexperienced mild to identify Bitcoin ETFs in January 2024. The funds had essentially the most profitable launch in ETF historical past, and presently handle near $170 billion in belongings. 

Ethereum ETFs received off to a slower begin following their Might 2024 approval, however now collectively handle over $31 billion in belongings. 

Trade observers at the moment are anticipating extra altcoin ETFs to get the inexperienced mild.

The SEC stated sure to the primary Solana ETF, the Rex-Osprey Solana + Staking ETF, in June, and it obtained $12 million value of first-day inflows.

Solana is the crypto community behind the sixth-biggest digital coin, SOL. The Solana blockchain is used for decentralized purposes, decentralized finance, meme cash, and extra. 

It is seen as a key rival to Ethereum, the community behind ETH, providing cheaper and sooner transactions. SOL presently has a market cap of $120 billion, and was just lately buying and selling for $220 per coin, in line with CoinGecko.