JPMorgan analysts foresee up to $8 billion flowing into XRP exchange-traded funds (ETFs) and $3 to $6 billion into Solana ETFs. However, they predict tepid demand for cryptocurrency ETFs beyond Bitcoin and Ethereum, highlighting a limited investor appetite for altcoin-focused products.

While Ripple’s ongoing legal battle with the SEC could conclude in 2025, potentially boosting XRP’s value, the figures projected for altcoin ETFs pale in comparison to the $107 billion invested in Bitcoin ETFs in 2024 and the $12 billion poured into Ethereum ETFs over the past six months.

Demand Concerns Cloud New Products

The uncertainty surrounding investor interest in altcoin ETFs remains a significant barrier. BlackRock, for instance, opted not to pursue a Solana ETF, citing insufficient demand. Kraken-owned CF Benchmarks CEO Sui Chung echoed this sentiment, stating that Solana ETFs are unlikely to match the rapid success of Bitcoin and Ethereum ETFs.

Grayscale’s Solana and XRP trusts also indicate muted enthusiasm, managing just $99 million and $12 million in assets, respectively. Despite this, firms like Bitwise, VanEck, and 21shares are still vying to launch Solana ETFs, signaling optimism among institutional players.

The Episodic Nature of Crypto Markets

JPMorgan attributes the muted demand for altcoin ETFs to the “episodic nature” of the crypto market. Outside of core tokens like Bitcoin and Ethereum, investor interest often shifts unpredictably, driven by fleeting trends and speculative enthusiasm.

This fickle sentiment has hindered sustained interest in products beyond the leading cryptocurrencies. Bitcoin ETFs captured 6% of the token’s market value in their debut year, and Ethereum ETFs amassed 3% within six months. Similar levels of adoption seem far-fetched for altcoins.

A Mixed Outlook for 2025

Despite hopes for regulatory support from the Trump administration, JPMorgan’s cautious outlook dampens expectations for 2025. While advocates anticipate more crypto ETFs, the broader market may struggle to replicate Bitcoin’s historic debut success.

Bloomberg ETF expert Eric Balchunas expects a wave of new cryptocurrency ETFs in the coming year but warns they may not enjoy immediate traction. Whether altcoin ETFs can carve out a meaningful share of the market remains an open question, as investor focus continues to gravitate toward the top two cryptocurrencies.