Cryptocurrency market maker GSR Markets suggests that U.S. spot Solana ETFs have the potential to push SOL prices up ninefold.
In a June 27 report, the firm described Solana as one of the “big three in the crypto industry” and explored whether Solana could be the next spot crypto ETF to receive approval from U.S. regulators.
Coincidentally, GSR’s report was released the same day VanEck filed for the Solana ETF spot, surprising many.
GSR — which holds a Long SOL position — has achieved an “8.9x” price increase estimate based on the assumption that spot Solana ETFs will account for 14% of the inflows that spot Bitcoin ETFs have seen since since their launch in January, based on the size of their relative market capitalizations.
GSR’s “optimistic scenario” would take Solana’s current price of $144 to over $1,320, while Solana’s market cap would increase to $614 billion (based on current supply).
Meanwhile, GSR’s “bear” and “baseline” scenarios would see Solana spot ETFs account for 2% and 5% of Bitcoin ETF inflows, driving SOL prices up 1.4x and 3.4x, respectively.
The firm said these estimates could be even larger if the Solana spot ETFs included income from staking rewards, although staking is not allowed in the Ether spot ETFs.
“Solana is preparing for a spot ETF if and when additional spot digital asset ETFs are authorized in the US, and the impact on price could be the largest ever.”
Despite GSR’s optimism, Bloomberg ETF analyst Eric Balchunas and others believe a change of president and US SEC chairman would be necessary for the Solana ETF to be taken seriously.
The SEC and Chairman Gary Gensler have labeled SOL a security in lawsuits against Binance and Coinbase, which could make the path to approval much more difficult than for the currently approved Bitcoin and Ether ETFs.
VanEck’s application comes a week after crypto asset manager 3iQ filed for a spot Solana ETF in Canada, marking a first in North America.
The Solana ecosystem and network also received praise from $1.5 trillion asset management firm Franklin Templeton. However, the company has not yet confirmed that it will subscribe to the Solana ETF in the future.
Itadori
According to FXStreet
