Spot Solana ETF can increase the price of SOL up to 9 times

Spot ETFs for Solana in the US could potentially boost the altcoin's price by up to nine times, according to a report by GSR Markets.

In a June 27 report, GSR described Solana as part of "the big crypto three” and explores the possibility of SOL becoming the next spot crypto ETF to receive US regulatory approval.

It is interesting that the report coincided with the surprising message of VanEck to submit an application for the spot Solana ETF on the same day.

GSR, which holds a long position in SOL, assumed that the Solana spot ETF would attract 14% of the capital inflow that the spot Bitcoin ETFs have struggled since their launch in January.

In "the blue sky scenario” on GSR, Solana's current price of $145 could rise to over $1,320, bringing Solana's market cap to $614 billion.

Unlike them, "the bear" And "the basic one” GSR scenario envisions Solana spot ETFs attracting 2% and 5% of Bitcoin inflows, respectively, resulting in a 1.4x and 3.4x increase in the price of SOL.

The firm noted that those valuations could be even higher if spot Solana ETFs included staking fee income, although staking is not permitted in approved spots Ethereum ETFs. The GSR stated:

Solana is ready for a spot ETF if and when additional spot ETFs for digital assets are allowed in the US, and the price impact could be the biggest yet.

Despite GSR's upbeat predictions, Bloomberg ETF analyst Eric Balchunas and others believe it will take significant political changes, such as a new US president and another Securities and Exchange Commission (SEC) chairman, for it to be seriously considered the creation of the Solana ETF.

The SEC and its chairman Gary Gensler classified SOL as a security in lawsuits against Binance and Coinbase, complicating the path to approval compared to already approved spot ETFs for Bitcoin and Ethereum.

VanEck's filing followed suit submission by crypto asset manager 3iQ for the spot Solana ETF in Canada, which was the first such case.