Solana

Spot

Spot Solana exchange-traded funds (ETFs) in the United States could potentially drive up the price of SOL by a factor of nine, suggests crypto market maker GSR Markets.&nbsp;
In a June 27 report, the firm described Solana as part of “crypto’s big three” and&nbsp;<a href="https://www.gsr.io/reports/is-solana-eft-next/" target="_blank" rel="noopener nofollow">looked</a>&nbsp;into whether Solana’s (<a href="https://cointelegraph.com/solana-price-index">SOL</a>) will be the next spot cryptocurrency ETF to receive U.S. regulatory approval.
Coincidentally, GSR’s report was released on the same day VanEck filed to issue a spot Solana ETF, surprising many. 
GSR — which holds a long position on SOL — reached the “8.9x” estimate on the assumption that the spot Solana ETFs would take in 14% of the flows that the spot Bitcoin ETFs have seen since launching in January, based on their relative market cap size.
GSR’s “blue sky scenario” would take Solana’s current price of $149 to over $1,320, while Solana’s market cap would increase to $614 billion (at current supply).
Meanwhile, GSR’s “bear” and “baseline” scenarios would see the spot Solana ETFs take in 2% and 5% of what Bitcoin took, triggering 1.4x and 3.4x price rises for SOL, respectively.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/039c7da2-1f4c-4812-9880-592e8e491699.png" alt="" title="">
 <figcaption style="text-align: center;">
 The price of SOL under base, bear and bull scenarios. Source: GSR Markets
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The firm said these estimates could be even larger if the spot Solana ETFs include income from staking rewards,&nbsp; though staking wasn’t allowed in the approved spot Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) ETFs.
<blockquote data-ct-non-breakable="true">
 “Solana is poised for a spot ETF if and when additional spot digital asset ETFs are allowed in the US, and the impact on price may just be the largest yet.”
</blockquote>
Despite GSR’s optimism, Bloomberg ETF analyst Eric Balchunas and others believe a <a href="https://cointelegraph.com/news/solana-etf-possible-change-united-states-president">change of U.S. president</a> and chair of the Securities and Exchange Commission would be necessary for a <a href="https://cointelegraph.com/learn/different-types-of-etfs">spot Solana ETF</a> to be seriously considered.
The SEC and its Chair, Gary Gensler, labeled&nbsp;<a href="https://cointelegraph.com/news/sec-labels-61-cryptocurrencies-securities-after-binance-suit">SOL as a security</a> in its lawsuits against Binance and Coinbase, arguably making the pathway toward approval much more challenging than the now-approved spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price'">BTC</a>) and Ether ETFs.
Related: <a href="https://cointelegraph.com/news/us-elections-solana-etf-sec">US elections are a ‘huge variable’ for Solana ETF approval</a>
VanEck’s application comes a week after cryptocurrency asset manager 3iQ filed for a <a href="https://cointelegraph.com/news/3iq-files-solana-etf-canada">spot Solana ETF in Canada</a>, which marked a North American first.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/c715b96a-78b7-487d-ae2e-afa7aaeab6ab.png" alt="" title="">
 <figcaption style="text-align: center;">
 Solana’s recent price performance and major developments. Source: GSR
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</figure>
<a href="https://cointelegraph.com/news/what-is-solana-and-how-does-it-work">The Solana ecosystem</a> and network have <a href="https://cointelegraph.com/news/franklin-templeton-raises-hope-spot-solana-etf-lauds-network">also received praise</a><a href="https://cointelegraph.com/news/franklin-templeton-raises-hope-spot-solana-etf-lauds-network"></a> from $1.5 trillion asset manager Franklin Templeton. However, the firm hasn’t confirmed it will for a spot Solana ETF in the future. 
Over $1 billion worth of Solana exchange-traded products are already offered worldwide.
Magazine: <a href="https://cointelegraph.com/magazine/el-salvador-bitcoin-chief-argentina/">El Salvador’s national Bitcoin chief has been orange-pilling Argentina</a>

Spot Solana ETF might 9x the price of SOL — GSR Markets

Cointelegraph

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