SOL Price Could Rise 9x After Spot Solana ETF Approval, Predicts GSR Markets

The adoption of spot Solana ETFs in the US may boost SOL up 9x, according to crypto market creator GSR Markets.

GSR Markets named Solana one of “crypto's big three” and assessed its chances of becoming the next US spot cryptocurrency ETF in a June 27 research.

Many were surprised when VanEck filed to establish a spot Solana ETF at the same time.

Spot Solana ETFs Could Draw 14% of Bitcoin ETF Flows
GSR, which maintains a long position on SOL, estimated “8.9x” based on the premise that spot Solana ETFs will grab 14% of spot Bitcoin ETF flows since their inception in January, taking into account their respective market size.

Based on current supply, GSR's optimistic scenario would push Solana's $149 price to over $1,320, leading in a $614 billion market valuation.

However, GSR provided more cautious possibilities.


In the “bear” and “baseline” scenarios, spot Solana ETFs would grab 2% and 5% of Bitcoin flows, increasing Solana's price by 1.4x and 3.4x.

GSR noted that these projections may be higher if spot Solana ETFs included staking rewards, which were not permitted in authorized spot Ether ETFs.

GSR is bullish, but Bloomberg ETF analyst Eric Balchunas and others think a change in the US administration and SEC leadership is needed to seriously contemplate a spot Solana ETF.


In litigation against Binance and Coinbase, SEC Chair Gary Gensler has classed the SOL token as a security, which might make approval harder than for Bitcoin and Ether ETFs.

VanEck's Solana ETF application follows 3iQ's Canadian file, a first in North America.

The Solana ecosystem and network have been praised by $1.5 trillion asset manager Franklin Templeton.

The company has not announced plans to develop a spot Solana ETF.

Over $1 billion worth of Solana exchange-traded instruments are available globally, demonstrating increased demand for SOL token and network exposure.

#Solana #Sol $SOL #etf