SOL Price Could Increase by 9x after Spot Solana ETFs Approval, Predicts GSR Markets
The approval of spot Solana exchange-traded funds (ETFs) in the United States has the potential to drive the price of SOL up 9x, according to crypto market maker GSR Markets.
In a recent report released on June 27, GSR Markets identified Solana as one of “crypto’s big three” and examined the likelihood of Solana becoming the next spot cryptocurrency ETF to receive regulatory approval in the US.
The report coincided with VanEck’s filing to launch a spot Solana ETF, which took many by surprise.
GSR, which holds a long position on SOL, arrived at an estimate of “8.9x” based on the assumption that spot Solana ETFs would capture 14% of the flows witnessed by spot Bitcoin ETFs since their launch in January, taking into account their relative market capitalization.
The optimistic scenario outlined by GSR would propel Solana’s current price of $149 to over $1,320, resulting in a market capitalization of $614 billion based on the current supply.
However, GSR also presented more conservative scenarios.
In the “bear” and “baseline” scenarios, the spot Solana ETFs would capture 2% and 5% of Bitcoin’s flows, leading to respective price increases of 1.4x and 3.4x for Solana.
GSR emphasized that these estimates could be even higher if the spot Solana ETFs incorporate income from staking rewards, although staking was not allowed in the approved spot Ether ETFs.
While GSR remains optimistic, Bloomberg ETF analyst Eric Balchunas and others believe that a change in the US presidency and the chairmanship of the Securities Exchange Commission would be necessary for serious consideration of a spot Solana ETF.
The knee jerk reaction here is 'oh this will never be approved bc there aren't Solana futures' agree but.. if change at POTUS i think anything
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