Solana cryptocurrency has significant growth potential if a spot exchange traded fund based on the SOL token is launched
Our experts drew parallels between the launch of bitcoin-ETFs and the potential impact of ETFs on Solana (SOL). The launch of the bitcoin-ETF in the US in January was accompanied by a surge of interest in Bitcoin. On a wave of anticipation since the previous October, the price of BTC more than doubled from $27k to $63k at the end of June 2024. And a similar scenario may repeat with Solana after the launch of the relevant ETFs.
For example, the price of SOL will grow 1.4 times in a bearish scenario, 3.4 times in a basic scenario and 8.9 times in an ideal scenario.
These scenarios are based on an estimate of capital inflows into existing Solana-based investment products compared to similar bitcoin-based investment products from 2021 to 2023 (before the emergence of spot ETFs in the U.S.).
The bear scenario assumes that the equity in Solana-based investment products will be 2% of the equity of similar bitcoin products. In the baseline scenario, the amount of funds would be 5%, respectively.
The ideal (blue sky) scenario takes into account capital flows into bitcoin products at the market peak in 2021 and now, when there are already spot bitcoin ETFs. The total amount of funds in Solana-based ETFs over the next three years could be 14% of what bitcoin funds will receive.
Analysts believe the impact of the launch of the Solana ETF on the cryptocurrency's exchange rate could be stronger because, unlike bitcoin, SOL is actively used for steaking in decentralized financial applications. $SOL