JPMorgan Sees Modest Inflows for Solana (SOL) ETFs Despite Likely SEC Approval

JPMorgan forecasts that Solana exchange-traded funds (ETFs) will attract about $1.5 billion in inflows during their first year, significantly less than ether's inflows. Despite the expected SEC approval for these ETFs, several factors may hinder their attractiveness to investors, including low network activity, investor fatigue, and competition from diversified crypto funds. Analysts from JPMorgan, led by Nikolaos Panigirtzoglou, pointed out that the premium of the Grayscale Solana Trust has dropped dramatically from around 750% to near zero, reflecting cautious investor sentiment prior to the ETF launches. The SEC is set to decide on multiple spot crypto ETFs in October, with market investors already pricing in these expectations. Weak signs in solana futures positioning at the Chicago Mercantile Exchange suggest further diminished demand for the upcoming ETFs. Consequently, JPMorgan's analysts believe the actual inflow might be less than the projected $1.5 billion due to these combined challenges.

Source 🔗