Spot Solana ETF can be 9x the value of SOL — GSR Markets.
Spot Solana exchange-traded funds (ETFs) in the United States can increase the value of SOL by nine times, according to crypto market maker GSR Markets.
In a June 27 report, the firm described Solana as part of “crypto's big three” and looked at whether Solana (SOL) would be the next cryptocurrency ETF to receive US regulatory approval.
Coincidentally, the GSR report was released on the same day VanEyck proposed to issue the Solana ETF, much to the surprise of many.
GSR – which holds a long position on SOL – has reached an estimate of “8.9x” assuming that the Solana ETF will take 14% of the inflows seen since the Bitcoin ETF launched in January. Cap size.
GSR's “blue sky scenario” would take Solana's current price of $149 to $1,320, while Solana's market cap would increase to $614 billion (at current supply).
Meanwhile, GSR's “bear” and “fundamental” scenarios would see Solana ETFs take in 2% and 5% of Bitcoin's take, adding 1.4x and 3.4x SOL's value, respectively.
The company notes that these estimates could be even larger if the Solana ETF position includes the proceeds from rewards, even though the position is not allowed to hold shares in Ether (ETH) ETFs.
“Solana is ready for the ETF space as more space digital asset ETFs are allowed in the US and the impact on prices could be the biggest yet.”
Despite GSR's optimism, Bloomberg ETF analyst Eric Balchunas and others believe a change in the US president and the chairman of the Securities and Exchange Commission is necessary for the Solana ETF to be taken seriously.
The SEC and Chairman Gary Gensler named SOL as a security in its lawsuit against Binance and Coinbase, making the path to approval more challenging than the now-allowed space Bitcoin (BTC) and Ether ETFs.
Related: US polls ‘big swing' for Solana's EFF approval.
VanEck's application comes a week after crypto asset manager 3iQ offered to acquire a Solana ETF position in Canada, marking its North American debut.
Solana Ecosystem and Networks received a commendation from Franklin Templeton, the $1.5 trillion asset manager. However, the company has not confirmed that there will be a position for the Solana ETF in the future.
More than $1 billion worth of Solana exchange-traded products are already available worldwide.
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