JPMorgan: "Limited capital inflows expected even if Solana ETF is approved"

Global investment bank JPMorgan said that capital inflows to a Solana (SOL) spot ETF, whose approval by the U.S. Securities and Exchange Commission (SEC) is considered likely, are expected to be "limited."

On the 9th (local time), according to crypto-focused media CoinDesk, JPMorgan said in a report that "even if a Solana spot ETF is approved, first-year inflows would be about $1.5 billion (about 2.13 trillion won)," adding that "this is about one-seventh the size of inflows to the Ethereum (ETH) ETF."

The bank cited as reasons for this outlook: slowing on-chain activity; trading concentrated on meme coins; investor fatigue from the launch of multiple new products; and competition with products based on composite indices such as the S&P Dow Jones Digital Market 50. It also mentioned the possibility that corporate treasury demand could be dispersed away from spot ETFs.

The report added that "no clear demand signals are appearing in Chicago Mercantile Exchange (CME) Solana futures positions."

JPMorgan noted that "much of the expectation has already been priced into the market," pointing out that "the premium of the Grayscale Solana Trust (GSOL) to its net asset value (NAV) plunged from about 750% last year to around 0% now." It said this was a similar pattern observed before the approvals of Bitcoin (BTC) and Ethereum ETFs.

Meanwhile, the SEC is scheduled to decide in October on the approval of roughly 16 digital asset spot ETFs, among which a Solana ETF is included. The market views approval as likely, citing examples such as CME futures listings and the first Solana ETF from REX Osprey launched in July.