The potential listing of Solana exchange-traded funds (ETFs) in the United States might substantially boost the value of SOL by a multiplier of nine, according to insights from cryptocurrency market maker GSR Markets.
In a report dated June 27, the company positioned Solana as one of “crypto’s big three” and investigated the likelihood of Solana’s (SOL) emergence as the next spot cryptocurrency ETF to garner regulatory approval in the U.S. Interestingly, GSR’s report coincided with VanEck’s surprising filing for a spot Solana ETF on the same day.
GSR, holding a positive stance on SOL, projected the “8.9x” surge by supposing that spot Solana ETFs would attract approximately 14% of the investments witnessed by spot Bitcoin ETFs post their debut in January, based on their respective market capitalizations. GSR’s upbeat scenario envisages propelling Solana’s current price of $149 to surpass $1,320, consequently driving its market cap to $614 billion, considering the existing supply.
On the other hand, GSR’s moderate and conservative estimations envision spot Solana ETFs drawing in 2% and 5% of Bitcoin’s investments, potentially leading to price surges of 1.4x and 3.4x for SOL, respectively.
GSR contemplated that these forecasts might escalate further if the spot Solana ETFs account for staking rewards, a feature absent in approved spot Ether (ETH) ETFs.
Despite GSR’s positive outlook, ETF analyst Eric Balchunas from Bloomberg and others argue that a change in U.S. presidential leadership and the Securities and Exchange Commission chair would be pivotal for serious consideration of a spot Solana ETF. The SEC and Chair Gary Gensler’s classification of SOL as a security during legal actions against Binance and Coinbase could pose obstacles in securing approval for a spot Solana ETF, a seemingly more intricate process compared to the approved spot Bitcoin (BTC) and Ether ETFs.
VanEck’s application follows 3iQ’s recent filing for a spot Solana ETF in Canada, marking a pioneering move in North America.
Acknowledging Solana’s recent market performance and significant advancements, asset management giant Franklin Templeton praised the Solana ecosystem and network. However, the firm hasn’t confirmed intentions to introduce a spot Solana ETF in the foreseeable future.
Currently, over $1 billion worth of Solana exchange-traded products are available globally. Additionally, in related news, El Salvador’s national Bitcoin leader has been influencing Argentina’s stance on cryptocurrency adoption.