JPMorgan analysts estimate that new crypto ETFs, concentrated on alternative cryptocurrencies, could generate up to $14 billion of inflows upon the SEC's approval.
According to the bank, demand for new crypto ETFs over and above Bitcoin and Ethereum is relatively limited. The forecast from analysts has been that Solana ETFs could attract $3 billion to $6 billion, and Ripple's XRP could attract as much as $8 billion in investments.
Despite these predictions, the possible capital for alternative cryptocurrency ETFs is but a drop in the ocean compared to the successes of Bitcoin and Ethereum. Bitcoin ETFs raked in a record-breaking $108 billion in 2024, while Ethereum pulled in $12 billion in just the last six months.
The prospect of new crypto ETFs has become a key topic since Donald Trump's election win. A one-time Bitcoin sceptic turned advocate, and he has engendered optimism in the digital asset community.
Trump's administration is promising to unwind regulatory constraints imposed under President Joe Biden, including replacing Gary Gensler, a well-known crypto foe, with Paul Atkins, an advocate for the industry, as SEC chair.
Such shifts notwithstanding, JPMorgan warns that new crypto ETFs may make slow progress, particularly against the background of regulatory uncertainty after the change in administration.
Analysts expect a further push of the ETPs in 2025 with filings and possible approvals, too. The court case of Ripple against the SEC is probably one of the reasons for the potential rise of XRP.