Crypto market makers GSR Markets believe spot Solana Exchange-Traded Funds (ETFs) could lead to 9X gains for SOL.
GSR’s June 27 market report grouped Solana as one of the three biggest cryptocurrency assets. The report also considered whether SOL would be among the next spot crypto ETFs to receive an SEC greenlight in the United States.
Surprisingly, this report coincides with VanEk‘s latest filing for a spot Solana ETF approval from the US authorities.
Another one. First to file for a Solana exchange-traded fund. https://t.co/klazclgYc6
— VanEck (@vaneck_us) June 27, 2024
GSR Optimistic on a Solana Spot ETF Approval
GSR currently holds a long position (buy trades) on SOL. Its 9X prediction for SOL assumes that Spot Solana ETFs would receive 14% of the inflow volume recorded by Bitcoin ETFs.
This GSR estimate is relative to SOL’s market cap size, currently at $67.18 billion. The report paints a blue-sky scenario where Solana (SOL) will rally to $1,312 from its current price of $145. If this comes to fruition, SOL’s market cap will surge to $614 billion (if it maintains the current supply).
Alternatively, GSR painted a bearish scenario where SOL will record only 2% and 5% of the Spot BTC ETF inflows if the SOL ETFs underperform. Under this scenario, SOL will record 1.4X and 3.4X price gains, respectively.
GSR noted that the price estimates could increase if the Spot Solana ETFs support income from staking rewards. However, this scenario is unlikely since the US authorities did not approve staking in the Spot Ether applications.
Meanwhile, Bloomberg ETF analyst Eric Balchunas shared his views on a possible SOL Spot ETF approval.
Yes, the odds of a Solana ETF being approved in next 12mo are tied at the hip to the odds of a change in POTUS and safe to say the chances of both are higher today then they were yesterday.. Altho we not giving any exact number on this yet. Way too early. https://t.co/lCdF3EXtLK
— Eric Balchunas (@EricBalchunas) June 28, 2024
Balchunas believes the odds of an SOL ETF approval within twelve months depend on a shift in the US administration in 2024. He claims the chances of a presidency change and an SOL ETF approval are higher after the presidential debate.
Notably, Balchunas’ stance hinges on the US Security and Exchange Commission’s (SEC) labeling of Solana as a security last year. This makes a Solana ETF approval quite challenging compared to Bitcoin and Ethereum Spot ETFs.
3iQ Files for New Solana Exchange-Traded Product in Canada
While Solana awaits regulatory clarity for its Spot ETFs in the US, other regions, such as North America, have also shown interest.
Digital asset company 3iQ has applied for a Solana exchange-traded product (ETP) on Canada’s Toronto Stock Exchange (TSE). If it receives approval, 3iQ’s product will be North America’s first Solana ETP product.
In a recent X post, 3iQ confirmed submitting a preliminary document for the Solana Fund (QSOL) in Canada. The asset manager also filed a preliminary prospectus with the securities regulatory authorities in all Canadian regions, excluding Quebec.
According to 3iQ corporation, this is a testament to their track record of innovation. The firm hopes to provide managed exposure to SOL and the opportunity for a long-term capital increase for Canadian investors.
3iQ previously launched the Bitcoin Fund and Ether Fund, which are listed on the Toronto Stock Exchange under the tickers QBTC and QETH. The QBTC and QETH were Canada’s first publicly traded funds.
So, 3iQ hopes to achieve a similar feat with Solana, which could positively affect SOL’s price based on inflows from investors.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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