Munzir HakimiTable of Contents
New Investment Horizons
Emerging cryptocurrency-based exchange-traded products (ETPs) could draw meaningful investment if approved, as suggested by JPMorgan. With growing anticipation for the first spot Solana (SOL) and spot XRP (XRP) ETFs, investors are optimistic about a more innovation-pleasant regulatory environment in the U.S. following President-elect Donald Trump’s inauguration on January 20.
JPMorgan’s report indicates that SOL and XRP ETPs may outperform existing Ether ETFs within their initial six months of trading, potentially attracting billions in net assets.
Potential Impact of ETPs
- Investment Projections:
- SOL could attract $3 billion to $6 billion.
– XRP might gather between $4 billion and $8 billion.
this prediction follows the first anniversary of U.S. spot Bitcoin etfs, which have amassed over $110 billion in cumulative holdings sence their launch.
- Market Influence:
New crypto-based ETFs could drive altcoins to new heights. For instance, Bitcoin ETFs accounted for approximately 75% of new investments when Bitcoin surged past the $50,000 mark shortly after their debut.
Uncertain Demand for Altcoin ETPs
Despite excitement surrounding potential SOL or XRP ETFs, investor demand remains unpredictable compared to established cryptocurrencies like Bitcoin and Ether.
- Adoption Rates:
– bitcoin has a 6% adoption rate among its total market cap.
– Ether saw a lower adoption rate at around 3%.
JPMorgan notes that while primary tokens show promise, predicting performance for altcoins is challenging due to fluctuating investor sentiment.
Upcoming SEC Decisions
Several asset managers have filed applications for Solana ETF approvals with the U.S. Securities and Exchange Commission (SEC), including VanEck and Grayscale. The SEC is expected to make preliminary decisions by late January:
- Key Dates:
– Grayscale’s submission deadline is January 23.- Other applicants anticipate decisions by January 25.
Experts believe that an ETF approval could positively influence Solana’s price due to its current low probability being factored into market expectations.
Final thoughts Ahead
The future looks promising yet uncertain as cryptocurrency-based ETPs await regulatory approval that may reshape investment landscapes considerably.
Reference
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- Cointelegraph: Emerging Cryptocurrency-Based Exchange-traded Products
- Cointelegraph: First Anniversary of US Spot Bitcoin ETFs
