Solana ETFs listings delayed as JPMorgan predicts the funds to net $1.5 billion in first year
JPMorgan analysts noted that “solana is not perceived by investors the same way as ethereum as the main DeFi/smart contract cryptocurrency.”
Solana ETFs have been delayed by the shutdown, but hopes are high they’ll hit the market shortly.
Despite the anticipation, JPMorgan analysts say inflows will be much more modest than those of bitcoin or ethereum ETFs, and anticipate $1.5 billion in inflows in their first year. To put this in context, bitcoin ETFs, which are just under 2 years old, amassed more than $2 billion in inflows in just two days this week.
JPMorgan analysts said that several drivers could lead to these lower inflows, including that “solana is not perceived by investors the same way as ethereum as the main DeFi/smart contract cryptocurrency,” as well as “investor fatigue with multiple crypto spot ETFs being launched.”
“The launch of ETFs that track more diversified crypto indexes composed of multiple crypto assets, poses additional competition,” they said, adding that “corporate treasuries could be diverting demand away from spot ETFs.”
Grayscale, VanEck, 21Shares, Canary, Bitwise, and Fidelity are among the firms with solana ETFs in the pipeline, for which the SEC has an October 10 deadline for approval. Grayscale amended its ETF filing on Thursday, setting the fund’s fee at a hefty 0.35%. In comparison, Bitwise, which also recently amended its filing, has a 0.20% fee and added “staking” to the fund’s name. Rex-Osprey launched a solana ETF in July, but registered under the Investment Company Act of 1940, “which is different from other spot ETFs filings that are being registered under the Securities Act of 1933/34,” per JPMorgan.
Solana, the sixth-largest crypto by market cap, has been struggling this week, just like the overall crypto market. The token was trending up on Friday morning, however, and is up 58.7% in the past year.
