Spot solana Exchange-traded funds (ETFS) are unlikely to attract large investor flows even if they are approved this week, according to a report released Wednesday by Wall Street bank JPMorgan (JPM).
Solana ETFs could generate about $1.5 billion in inflows in the first year, about a seventh of those for Ether. wrote the analysts led by Nikolaos Panigirtzoglou.
But analysts have warned that figure could be lower due to declining on-chain activity, memecoin trading volume, investor fatigue with multiple launches and competition from diversified crypto index products such as those tied 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 Chicago Mercantile Exchange (CME) solana futures.
The U.S. Securities and Exchange Commission (SEC) is expected to rule on approximately sixteen spot crypto ETF applications in October, including Solana.
Markets are widely awaiting approval, 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 collapsed from around 750% last year to near zero, echoing bitcoin. and other trends ahead of ETF launches.
Learn more: “Solana is the new Wall Street,” says Bitwise CIO Matt Hougan
