Report: Solana ETF approval could increase SOL’s value ninefold

VanEck, the leading asset manager and issuer of Bitcoin Exchange Traded Funds (ETFs), has officially submitted a Spot Solana ETF with the U.S. Securities and Exchange Commission (SEC), fueling bold growth predictions for the Solana ecosystem.

Market-making firm GSR Markets recently published a report that sheds light on the potential impact of a Solana ETF, highlighting the platform’s rise as part of the “Big Three” in the crypto space.

Speculation about a Solana ETF approval

GSRs report underlines Solana’s rapid rise within the cryptocurrency industry and positions the company as a major player alongside Bitcoin and Ethereum.

With the Bitcoin ETF market already approved and Ethereum on the verge of launching a spot ETF in the US, GSR believes it is only a matter of time before Solana follows suit and potentially makes the biggest impact.

GSR’s analysis highlights three key factors: technological advances that set Solana apart from its competitors. First, Solana’s proof-of-history allows validators to produce blocks efficiently, resulting in notable speed and scalability advantages.

Second, Solana’s parallel transaction processing enables higher throughput and benefits from improvements in computational speed.

Finally, the company stated that Solana’s architecture enables it to solve the “blockchain trilemma” by achieving global state synchronization at “unprecedented speed” while decreasing hardware and bandwidth costs.

In addition, GSR’s report looks at the likelihood of Solana getting a spot ETF for digital assets. While the current legal framework Although a government-regulated futures market and a futures-based ETF are required before a spot product can be considered, GSR believes the potential for change should not be underestimated.

The company also claims that the crypto industry has bipartisan support, and changing attitudes among lawmakers indicate a more favorable environment for digital assets.

A Trump administration and a liberal SEC commissioner could pave the way for the introduction of spot ETFs for digital assetscreating opportunities for Solana and other cryptocurrencies, the report said.

Expected impact on the SOL price

GSR emphasizes the importance of decentralization and potential demand in determining the next digital asset spot ETF.

Factors such as permission-free participation, development control, Token allocationand deployment characteristics contribute to the degree of decentralization of a blockchain.

Meanwhile, potential demand, as shown by metrics such as market capitalization, is a crucial factor for issuers when assessing future inflows. GSR combines decentralization and demand scores to create an ETF Possibility Score that highlights Ethereum and Solana as leading contenders for the next digital asset ETF spot.

GSR draws parallels to the impact of spot Bitcoin ETFs on the Bitcoin price and estimates the potential impact of a Solana ETF on SOL. Taking into account Solana’s smaller Market capitalization Compared to Bitcoin, GSR predicts a SOL price increase of 1.4 to 8.9 times under various scenarios.

However, the report acknowledges that the impact could be even greater when considering SOL’s active use in staking and decentralized applications. In the event of a spot ETF approval, GSR believes the potential upside for SOL represents a significant market opportunity.

As investor excitement over this development became apparent, SOL’s price hit a weekly high of $151 on Thursday. However, in the past few hours, SOL has fallen by almost 4% to a current trading price of $143.

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