SOL’s future is bright as Solana has solidified its place alongside Bitcoin and Ethereum in the crypto-sphere. BTC and ETH have ETFs or are on their way to having them, while SOL still remains a long ways off. next Spot ETF comes to focus.
GSR Markets has recently conducted an analysis that suggests such ETFs can catalyze the price of SOL to reach nine times what it is currently worth.
SOL Prices Increased by 8.9x
GSR Markets used BTC as a comparison to gauge SOL’s potential price impact. own ETF approvals. Historical bitcoin price surged The increase was driven by ETF inflows.
Applying similar scenarios to Solana, GSR Markets predicts The potential for price rises varies from 1.4x to 8,9x, depending upon the size of ETF flows relative to Bitcoin.
SOL is also a beneficiary of market dynamics. Solana is more active in staking, decentralized apps and other applications than BTC. This suggests that ETF inflows could have a greater impact on Solana. It could lead to what analysts call a “free option” Investors can expect significant gains compared to the current market condition.
GSR Markets continues to be optimistic regarding Solana’s future, despite challenges such as the size of Bitcoin’s market and regulatory uncertainty. SOL may see a significant price increase if U.S. regulatory changes allow additional digital assets ETFs.
What is the path to a Solana Spots ETF?
GSR Markets says that several market and regulatory factors will determine whether a U.S. spot crypto ETF is possible. In contrast to futures ETFs that currently dominate alongside Bitcoin and Ethereum on the market, a Solana ETF requires a federally regulated futures markets and demonstrated market correlations over several years.
Recent political movements, however, suggest a possible change to the regulatory landscape. Support for crypto by former president Donald Trump and other figures has become increasingly common. softened The opposition of Democrats led to bipartisan agreement on regulatory frameworks which could create new opportunities for crypto, paving the way for future ETF approval.
Decentralization measures and expected demand are key determinants of the approval of an ETF spot Solana. When evaluating Solana, it is important to consider metrics like the Nakamoto Coefficient. Staking requirements and Governance ratings. The market indicators and existing AUM are important factors. They also measure the potential interest of investors and viability.
GSR Markets combines the factors in its analysis into an ETF Probability Score that places Solana alongside Ethereum as the frontrunners for the ETF. next spot digital asset ETF. Ethereum ETF’s latest filings. anticipated Launches is the leader, followed by Solana due to its positive score in decentralization metrics and demand.
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Source: cryptopotato.com