Crypto market maker GSR Markets predicted a significant rise in Solana (SOL) price following the approval of a spot Solana ETF in the United States. The firm stated that in a “blue sky” scenario, the SOL price could increase ninefold, and even in a “bear” scenario, a 1.4-fold increase is expected. These predictions became more noteworthy with VanEck’s unexpected application for a spot Solana ETF.
The Big Three in the Crypto Space: Bitcoin, Ethereum, and Solana
In GSR Markets’ report dated June 27, Solana was described as part of the “big three in the crypto space.” Accordingly, the potential for Solana to be the next spot crypto ETF to receive regulatory approval in the US was examined. This analysis created a significant buzz in the industry with VanEck’s application for a spot Solana ETF on the same day. According to GSR’s prediction, spot Solana ETFs could capture 14% of the market flows experienced since the launch of spot Bitcoin ETFs in January.
According to GSR’s optimistic scenario, Solana‘s current price of $149 could rise above $1,320, bringing the cryptocurrency’s market value to $614 billion. The firm also predicted price increases of 1.4 times and 3.4 times even in more grounded scenarios. If staking rewards are included, these predictions could be even higher. However, the potential increase may be limited by the fact that staking is not allowed in approved spot Ethereum ETFs.
Skepticism Towards GSR’s Predictions
Bloomberg ETF analyst Eric Balchunas and many other analysts are skeptical of GSR’s optimistic predictions. They argue that major regulatory changes, such as a new US President and a different SEC Chairman, are necessary for a spot Solana ETF to gain serious consideration. Current SEC Chairman Gary Gensler labeling the SOL token as a security and the lawsuits against Binance and Coinbase complicate the approval process.
VanEck’s application for a spot Solana ETF came just a week after crypto asset manager 3iQ applied for a similar ETF in Canada. It remains uncertain whether major firms like Franklin Templeton, which praise the Solana ecosystem, will apply for spot Solana ETFs in the future.
Globally, the value of Solana-based exchange-traded products already exceeds $1 billion. This international interest is notable in demonstrating Solana’s growing recognition and potential in the crypto market. However, the path to regulatory approval is fraught with challenges, making the future of a spot Solana ETF in the US uncertain. Nevertheless, given the current discussions, it might eventually receive approval.
