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JPMorgan analysts believe that exchange-traded funds (ETFs) tied to Solana could see only modest investor inflows, even if the U.S. Securities and Exchange Commission grants regulatory approval. The bank’s latest outlook suggests that while Solana has gained momentum as a fast and efficient blockchain, its ETFs may not generate the same level of excitement or capital as those linked to Bitcoin or Ethereum.
The report comes amid growing speculation that Solana-based ETFs could be on the horizon, especially after regulatory progress with other crypto products. However, JPMorgan points out that Solana still lacks the same institutional familiarity and infrastructure support that larger cryptocurrencies have developed over time. This could limit demand, at least in the early stages, even if the product is greenlit by regulators.
Analysts also noted that retail investors may be cautious, given the volatility and past network outages Solana has faced. While the blockchain has improved in both performance and stability, its history could weigh on investor confidence. Additionally, the broader market conditions and interest rate environment may influence how much capital flows into any new crypto-linked ETFs in the near term.
Despite the cautious tone, JPMorgan acknowledges that approval would still be a positive milestone for Solana and for the broader trend of expanding crypto investment products. Even with limited inflows at first, such ETFs could help build long-term legitimacy for alternative Layer 1 assets and offer another regulated avenue for exposure beyond Bitcoin and Ethereum.
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