Morning Minute | Solana and XRP ETFs 'Could Attract Billions'

TylerD's Market Summary

📈 JP Morgan Is Bullish on SOL and XRP ETFs

The Bitcoin ETFs have been a smash success, breaking multiple ETF records and attracting over $35B in inflows in their first year.

The ETH ETFs have been picking up steam lately as well, now over $2.4B in net inflows.

And now big bank analysts are setting their sights on the next batch of ETFs.

Notably, XRP is up 18% on the week to $2.77 ($158B in market cap) and is by far the top mover amongst crypto majors, while Solana is down 4.5% on the week.

What Happened?

JP Morgan analysts have predicted that Solana and XRP ETFs could attract billions in investment.

In a recent report, JP Morgan analysts stated that upcoming Solana and XRP exchange-traded funds (ETFs) could bring in substantial investments—estimated at $4–$8 billion for Solana and $3–$6 billion for XRP.

They went on to acknowledge that while these are strong inflows, they fall far short of Bitcoin (obviously).

However, these figures fall far short of Bitcoin ETFs, which saw record-breaking success with BlackRock's iShares Bitcoin Trust amassing $50 billion in its first year.

What Are They Saying?

Regarding how the SOL and XRP ETFs would compare to ETH and BTC: "Regardless of an exact number, we think [Solana and XRP ETFs] will match if not fall below Ethereum ETP expectations given their altcoin status and, similarly, that Bitcoin remains the favored crypto token to trade and own both in spot and ETP form."

They went on to state that the "episodic nature of the crypto market is driven by varying investor sentiment and trendy new coins that may capture incremental attention for a limited time."

Why It Matters

More ETFs are coming, and it seems Solana and XRP are next up.

Solana has plenty of tailwinds from its onchain ecosystem growth, as it generates fees on par with Ethereum, dominates memecoins, leads in the AI race, and expands in DeFi, DePIN and more.

Meanwhile, XRP clearly has a retail army behind it who just love buying the token.

Each will benefit from an ETF, and both of those ETFs will have retail demand.

The real wild card here is Trump and his idea of making American-made crypto tax free.

Guess what? XRP is American made.

If XRP becomes the top tax free crypto token, and it has a shiny new ETF, it could really explode upwards.

There's even a scenario on the table where XRP flips ETH this cycle.

We will certainly see, and in the meantime - bring on the ETFs...

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

• ETH NFT leaders were mixed, led by Punks and Doodles; Punks +12% at 40.3 ETH, Pudgy -3% at 23.3, BAYC -3% at 14.25 ETH, Azuki -6% at 12.4 ETH, Doodles +9% to 4.87 ETH
• Rug Genesis (+42%) and Art DeCCOs (+42%) led top movers
• CryptoPunks saw 24 sales in the past day amidst rumors of a potential sale of their IP circulated, including a 100 ETH pilot sale
• DXNK debuted its new 2k supply collection, opening at a 0.22 ETH floor
• BTC NFT leaders were mostly red; Bitcoin Puppets -10%, NodeMonkes -2%, OMB even, Quantum Cats even
• The Runes leaders were very green; DOG -5% at $488M mc, PUPS +3% at $68M, BDC +12% at $35M, GIZMO +32% at $12M
• NBA Top Shot has 8 Moments being auctioned off at Sotheby's through Jan 21 as part of its broader NBA memorabilia sale, with Moments featuring Jaylen Wells, Bob Carrington and more

💰 Token, Airdrop & Protocol Tracker

Here's a rundown of major token, protocol and airdrop news from the day:

🌎 Macro Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

• Crypto majors are up slightly ahead of today's CPI data, XRP leads; BTC +1% at $96,700, ETH even at $3,200, SOL even at $186, XRP +7% at $2.75
• DEXE (+13%), IOTA (+10%), LDO (+10%) led alts
• A JP Morgan report said that XRP and SOL ETFs could pull in billions in cash from investors, though not at the level of the Bitcoin ETFs
• Maker approved another $1.1B fund allocation into Ethena USDe and sUSDE
• Gary Gensler swiped at crypto perhaps one last time in an interview on Squawk Box, although he did mention that people "want to trade" Bitcoin and compared it to Gold
• Sigma Capital launched a $100M web3 venture fund in the UAE, focused on DeFi, blockchain infra, RWAs, gaming and the metaverse
• Memecoin majors are mixed this morning; DOGE +1%, SHIBA -1%, PEPE -1%, PENGU -3%, BONK -1%, WIF +1%, MOG -2%
• Coinbase added TOSHI to its roadmap, leading to a 150% spike to $130M

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