sun spot Exchange-traded funds (ETFS) are unlikely to attract large investor inflows even if they are approved this week, according to a Wednesday report from Wall Street bank JPMorgan (JPM).
Solana ETFs could see around $1.5 billion in inflows in first year, about one-seventh of ether’s wrote analysts led by Nikolaos Panigirtzoglou.
But analysts warned that the figure could be lower due to decreased on-chain activity, heavy memecoin trading, investor fatigue from multiple launches and competition from diversified crypto index products, such as those linked to the S&P Dow Jones Indices Digital Markets 50. Corporate treasuries could also divert demand from spot ETFs.
JPMorgan also noted weak demand signals in the positioning of solana futures on the Chicago Mercantile Exchange (CME).
The US Securities and Exchange Commission (SEC) is expected to decide on approximately sixteen spot crypto ETF applications in October, including Solana.
Approval is widely expected by markets, helped by an existing CME futures contract and the July launch of REX Osprey’s first Solana ETF, the bank said.
JPMorgan noted that expectations are already visible in prices. The premium to net asset value (NAV) of Grayscale Solana Trust (GSOL) has plummeted from around 750% last year to almost zero, echoing Bitcoin. and ether trends before ETF launch.
Read more: ‘Solana is the new Wall Street,’ explains Bitwise CIO Matt Hougan
