Solana ETF Has the Potential to Increase SOL Prices Up to 9 Times!

Bittime - The Solana ETF has the potential to significantly influence the price of SOL. This ETF is predicted to be able to soar the price of SOL up to nine times! This is the explanation.

GSR Markets Predictions Potential Solana ETF

The crypto market making company, GSR Markets, in its report on June 27 called Solana one of the "top three crypto assets". They also analyzed whether SOL would be the next crypto to get the green light from United States regulators to have its own ETF.

This GSR report was interestingly released on the same day that investment firm VanEck applied to issue a Solana ETF. The presence of this ETF certainly surprised many people.

GSR, which is known to have a large SOL ownership position, estimates that the price of SOL could soar up to 8.9 times. This estimate is based on the assumption that the Solana ETF will absorb 14% of the inflows into the Bitcoin ETF since its launch last January.

This figure is adjusted to the market capitalization of the two crypto assets. If GSR's best prediction ("blue sky scenario") comes true, the price of SOL, which is currently around $149 (around IDR 2.4 million) could shoot up to above $1,320 (around IDR 21.4 million).

Solana's market capitalization is also expected to jump to $614 billion (around IDR 9,992 trillion) with the same supply as today.

Solana ETF Market Scenario from GSR

GSR also takes into account more conservative ("bear" and "baseline") scenarios. In this scenario, the Solana ETF is predicted to absorb between 2% and 5% of the inflows into the Bitcoin ETF. This will push the price of SOL to increase by 1.4 times and 3.4 times respectively.

This GSR estimate could be even higher if the Solana ETF later includes income from staking (the process of "holding" crypto to earn rewards). It should be noted that staking is not permitted in pre-approved Ether (ETH) ETFs.

"Solana has the potential to have its own ETF if and when ETFs for other digital crypto assets are allowed in the US. The impact on the price of SOL has the potential to be the largest yet," said GSR.

However, Bloomberg ETF analyst Eric Balchunas and several other experts argue that the approval of the Solana ETF requires a change in leadership in the United States, both the president and the chairman of the Securities and Exchange Commission (SEC).

Solana ETF Optimism Overshadowed by SEC View

GSR's optimism was tempered by the views of the SEC and its chairman, Gary Gensler. They previously labeled SOL as a security in lawsuits against Binance and Coinbase. This makes the Solana ETF approval process much more challenging compared to existing Bitcoin and Ether ETFs.

VanEck's application comes a week after crypto asset management firm 3iQ filed for a Solana ETF in Canada, the first of its kind in North America.

Solana's ecosystem and network also drew praise from $1.5 trillion asset management firm Franklin Templeton. However, there has been no confirmation whether they will also apply for a Solana ETF in the future.

Solana-related investment products with a total value of more than $1 billion are already available in various parts of the world.

How To Buy Solana (SOL) With Bittime

You can buy and sell Solana (SOL) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

Solana (SOL) is available on Bittime with SOL IDR pairing.

To be able to buy SOL tokens on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn How to Buy Solana (SOL) on Bittime.

Monitor price chart movements of Solana (SOL), Bitcoin (BTC), Ethereum (ETH), and other cryptos to find out today's crypto market trends in real-time on Bittime.