Solana ETFs May Outperform Bitcoin Returns, Potentially Expedited in Trump Administration: GSR

A recent research report from cryptocurrency market maker GSR has shed light on the potential for a Solana ETF approval in the United States, especially with the prospect of another Donald Trump presidency. The report indicates that Solana (SOL) could be the next cryptocurrency to receive ETF approval after Bitcoin and Ethereum, potentially leading to significant price increases for SOL.

The report draws parallels with Bitcoin’s price surge following its spot ETF approval and presents three scenarios for Solana’s price growth: a bear case estimate of a 1.4x increase, a base case of a 3.4x increase, and an optimistic “blue sky” scenario of an 8.9x increase. GSR suggests that Solana is well-positioned for a spot ETF approval, which could have a substantial impact on its price.

The political landscape surrounding cryptocurrencies has seen a shift, with both Democrats and Republicans showing support for digital assets. The report highlights Donald Trump’s backing of the crypto industry, leading to a more favorable stance from Democrats. This bipartisan support has resulted in the passage of crypto-friendly legislation, indicating a positive outlook for the industry.

GSR’s analysis introduces an “ETF Possibility Score” based on decentralization and potential demand, with Solana scoring positively on both fronts. The report concludes that Solana could be next in line for a spot ETF approval in the U.S., further boosting its potential.

In a significant development, asset management firm VanEck has filed for a spot Solana ETF with the SEC, marking a crucial step for Solana in the U.S. market. This filing has already impacted SOL’s price positively, showing a nearly 10% increase on the day.

Comparisons between Solana and Bitcoin’s ETF approval experiences suggest that Solana’s upside potential could be even greater due to its utility in various applications. GSR notes that Solana’s active use in staking and decentralized applications could lead to a nonlinear relationship between flows and size, potentially resulting in substantial price gains.

In conclusion, the report emphasizes Solana’s promising prospects for a spot ETF approval and its potential for significant price growth, positioning it as a cryptocurrency to watch in the evolving crypto landscape.