Solana is the next brightest candidate for spot ETF after ETH

Recent buzz surrounding the possible approval of a spot Ethereum ETF has not only boosted Ethereum prices but has also attracted significant interest in Solana as the next brightest candidate for an ETF. Amid this optimism, Daniel Yan, co-founder of Matrixport, proposed a strategic direction for investors, suggesting a focus on Solana.

Is Solana the next candidate?

In a post on X, Yan analyzed the immediate market reactions to major ETF approvals and provided a strategic analysis for potential future moves. His insights are based on historical market behavior observed after the Bitcoin spot ETF was approved.

After the Bitcoin spot ETF was approved on January 10, BTC experienced a sharp decline (-15%) in the following weeks. The pattern of a sudden drop followed by a sharp increase could provide a warning to investors eyeing the possibility of Ethereum ETF approval.

While the intuitive reaction might be to invest in Ethereum, as its price has increased nearly 20% in the past 24 hours, Yan suggests a more nuanced approach that could yield greater benefits: “BUY SOL/ETH” trading strategy. This proposal is based on three main observations:

Next candidate for an ETF: Yan believes that Solana could be the next cryptocurrency to be considered for an ETF if the ETH ETF is approved. This expectation could lead to increased interest from investors and a potential rally in SOL's price.

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