Extreme price prediction for Solana (SOL): What level can it reach?

Crypto market maker GSR Markets estimates that Spot Solana exchange-traded funds in the US could increase the price of SOL ninefold.

The company named Solana as part of the big three in cryptocurrencies in a June 27 report and is exploring whether Solana could be the next spot cryptocurrency ETF to gain approval in the US. GCR's report surprised people as it was published on the same day VanEck applied for the spot Solana ETF.

High on Solana, GSR expects an 890 percent price performance for SOL based on the impact BTC has had with the launch of spot Bitcoin ETFs. While GSR's positive scenario increases Solana's current price of $149 to over $1,320, Solana's market value could reach $614 billion.

According to GSR's negative scenario, spot Solana ETFs will acquire 2 percent and 5 percent of Bitcoin, which will push the Solana price up 1.4 times and 3.4 times, respectively. The company noted that these estimates could increase further if spot Solana ETFs include income from staking rewards. However, the SEC did not allow staking in approved spot Ether ETFs.

Despite GSR's optimism, Bloomberg ETF analyst Eric Balchunas and others think the SEC chairman needs to change before the spot Solana ETF can be seriously considered. SEC Chairman Gary Gensler described SOL as a security in his lawsuits against Binance and Coinbase. This development makes the path to approval even more difficult.

VanEck's filing comes a week after cryptocurrency asset manager 3iQ filed for a spot Solana ETF in Canada, a first in North America.

The Solana ecosystem and network have also received praise from $1.5 trillion asset manager Franklin Templeton, but the firm has not announced any plans for a spot Solana ETF in the future.