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The spot exchange-traded fund narratives have re-emerged with Solana this time.
The altcoin dominated this week’s crypto following news that VanEck filed for a spot SOL ETF.
The filing positioned Solana among the top digital assets, Bitcoin and Ethereum.
VanEck’s head of research, Mathew Sigel, displayed confidence about Solana’s potential, calling the asset a commodity.
I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
Some thoughts on why we believe SOL is a commodity are below.
Why did we file for it?
A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024
GSR Markets seem to back these claims with the latest report, which detailed Solana as one of the most promising assets in the cryptocurrency industry.
The report, which coincidentally came the day VanEck filed for Solana ETF, expects approval to have the most effect on SOL compared to Bitcoin and Ethereum.
“And with the other having or on the cusp of a spot ETF, not only is it likely just a matter of time before Solana gets one too, but also the impact on SOL just might be the largest yet.”
GSR remained confident that the prevailing construct has no obstacle to hinder Solana ETFs approval in the United States.
GSR predicts Solana price surge
The market maker stated that the spot Solana exchange-traded fund launch could catalyze a 9x price increase for Solana.
GSR predicted an 8.9x uptick after presuming the Solana ETFs would see 14% of Bitcoin ETFs’ inflows.
In a report this morning, GSR estimated Solana spot ETF approval would increase SOL's price by 1.4-8.9x pic.twitter.com/ZMaRXzKD0C
— Jack Kubinec (@whosknave) June 27, 2024
SOL traded at $142 during this publication, and a 9x surge would propel the altcoin towards the $1,280 mark.
Such an uptick would magnify Solana’s market cap to $590 billion, cementing the altcoin’s status as among the top assets in the crypto world.
Meanwhile, a baseline case assumes that Solana ETFs would attract 2% & 5% of Bitcoin ETFs’ inflows.
Such a scenario would lead to a 1.4x and 3.4x surge in the SOL price, pushing Solana to $199 and $483, respectively, from the current price.
Meanwhile, Bloomberg ETF analyst Eric Balchunas believes the United States political scene is crucial for Solana ETFs’ approval.
X screenshot
Though “way too early” Balchunas seems confident that anything is possible upon pro-crypto Donald Trump’s victory.
Donald Trump has affirmed that he will promote the cryptocurrency industry once elected as president.
That’s contrary to the Biden leadership, which has suppressed digital assets growth with unclear regulations.
Solana continues to makes its ecosystem home for all crypto enthusiasts, and an ETF approval could be the final catalyst for remarkable price surges.
The post Market maker GSR bullish on Solana ETFs, predicts 9x SOL price surge upon approval appeared first on Invezz
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