Solana ETFs Can Overpower Bitcoin Gains if Trump Becomes President

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As a researcher with a background in cryptocurrencies and blockchain technology, I find the GSR report on Solana’s potential price surge due to a possible spot Solana ETF intriguing. The parallels drawn between Bitcoin’s price increase following its ETF debut are convincing, and I believe there is merit in GSR’s analysis.

As a researcher studying the cryptocurrency market, I came across an intriguing report published by GSR on Thursdays. According to their findings, the chances of approval for a spot Solana Exchange-Traded Fund (ETF) under President Donald Trump’s administration could potentially increase significantly. Consequently, if Trump returns to office later this year, GSR anticipates a robust surge in Solana’s price. Remarkably, they predict that Solana might yield more substantial returns than Bitcoin upon the debut of its spot ETF.

As a crypto investor, I’ve been closely following the market trends and the latest report from GSR has caught my attention. The parallels they draw between Bitcoin’s price surge after the launch of the spot Bitcoin ETF in the US are noteworthy. Back in October 2023, Bitcoin was priced at around $27,000 – just three months before SEC approval. Fast forward to this month, and the price has nearly tripled, sitting comfortably around $63,000.

  • A bear case with a 1.4x price jump,
  • A base case with a 3.4x increase, and
  • A “blue sky” scenario predicting an 8.9x rise based on optimistic inflow estimates.

According to GSR, the price increase of Solana may outshine that of Bitcoin due to the broader utility of its blockchain in various decentralized finance (DeFi) applications and other projects developed on its platform.

“While Bitcoin (BTC) primarily functions as a digital currency, Solana (SOL) is more than just that. It’s extensively employed for staking and integrated into decentralized apps. Consequently, the correlation between volume and size may not follow a straightforward linear pattern,” GSR explained.

GSR Ranks Solana on ‘ETF Possibility Score’

As an analyst, I’ve taken into account two key factors – decentralization and potential market demand – in evaluating Solana’s position. Based on these criteria, Solana has earned a high “ETF Possibility Score,” making it a strong contender for consideration as the next digital asset to be included in a spot Exchange-Traded Fund (ETF) in the US market. According to my analysis, Solana is well-positioned and could potentially follow Ethereum‘s lead in this regard.

An early push for a Solana exchange-traded fund (ETF) is gaining traction, as evidenced by VanEck’s recent SEC filing for a spot Solana ETF on Thursday. This news significantly boosted the price of Solana, propelling it to surpass $150 per token.

According to GSR’s analysis, a US presidential election win by Trump could potentially expedite the approval process for more crypto ETFs similar to Solana. However, if Trump is re-elected, he may disrupt the conventional methods for launching such ETFs, which can take years and require federally regulated futures contracts – a prerequisite that Solana does not currently meet.

New High: The probability of Donald Trump securing the presidency in the 2024 election has spiked, reaching 63%.

Since the debate started, odds of Trump winning the election have surged by over 10%.

Odds of President Biden winning a second term have fallen from 48% to 37%.

Markets…

— The Kobeissi Letter (@KobeissiLetter) June 28, 2024

According to a recent poll, there’s been a significant increase in Donald Trump’s chances of securing the presidency in the next US election, sitting at approximately 63%. Consequently, this development bodes well for the crypto market.

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2024-06-28 11:12