Solana (SOL) Price Increase Potential If Solana ETF Approved

Bittime - Solana (SOL) is attracting attention again following GSR Markets' latest report, indicating a potential significant increase in SOL prices. According to the report, GSR has a long position on SOL and is very optimistic about Solana. This report comes on the heels of VanEck's application to issue a Solana ETF in the US.

Solana Price Increase

The GSR Markets report outlines several possible scenarios for SOL pricing, based on the performance of the proposed spot Solana ETF.

Bullish Scenario

In this scenario, the Solana spot ETF is expected to absorb 14% of all inflows into the spot Bitcoin ETF since its launch in January. This is expected to increase the price of SOL from $149 to over $1,320.

Solana's market cap would jump to $614 billion in this scenario making Solana among the largest crypto assets.

Bearish and Baseline Scenarios

In a bearish scenario, the Solana spot ETF would attract only 2% of the inflows into the Bitcoin ETF, which would trigger a 1.4-fold increase in the price of SOL.

Meanwhile, in the baseline scenario, the Solana spot ETF is expected to absorb 5% of Bitcoin ETF fund flows, which would increase the price of SOL by 3.4 times.

GSR also added that this valuation could be higher if the Solana spot ETF includes income from staking rewards, although this is not yet included in the approved Ether spot ETFs.

SOL in Lawsuit with Binance and Coinbase

While GSR Markets' projections are very optimistic, there are significant challenges in getting a spot Solana ETF approved in the US. SEC Chairman Gary Gensler has categorized the SOL token as a security in a lawsuit against Binance and Coinbase, which makes the path to approval more difficult compared to already-approved spot Bitcoin and Ethereum ETFs.

Bloomberg ETF analyst Eric Balchunas thinks a change in leadership of the US President and SEC Chair may be necessary for serious consideration of a Solana spot ETF.

Solana Ecosystem Influence and Support

The Solana ecosystem and its network have earned praise from $1.5 trillion asset manager Franklin Templeton. Despite this, the company has not confirmed whether it will apply for a spot Solana ETF.

Additionally, over $1 billion worth of Solana exchange traded products (ETPs) are already offered worldwide, indicating strong interest and support for Solana in the global market.

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