Analyst Says Approval of Ether-Based Spot Funds Is “More Bullish for SOL Than ETH”

2 min readMay 23, 2024

If Ethereum spot funds are approved, Solana could be the next contender to launch an ETF. This statement was made by Matrixport co-founder Daniel Yang.

“This may sound absurd and definitely unpopular. […] SOL will be the №1 next in line if ETH ETF get approved,” Yang wrote on social media X.

According to him, ether paired with Bitcoin rose in price by 12% after information about the request of the US Securities and Exchange Commission to issuing companies to update the registration form in applications to launch the product.

Yang believes that after the likely launch of the Ethereum-ETF, the second largest digital coin by capitalization may undergo a correction similar to the main cryptocurrency, which fell by 10% in the first time of trading in the instrument.

And the analyst, who calls himself gumshoe, believes that the approval of Ether-based spot funds is “more bullish for SOL than for ETH.”

“ETH ETF approval is more bullish for SOL than ETH:

— Approved? The next ETF is SOL

— Rejected? There is less reason to buy ETH, SOL is more attractive,” he emphasized.

At the same time, the analyst believes that the negative point is that now the market will evaluate each approval of spot funds, and in case of refusal, the industry may experience a “nuclear strike.”

The SOL price is over $175. The capitalization of the digital currency is about $78.9 billion.

Earlier, Merkle Tree Capital investment director Ryan McMillin announced a forecast regarding the likely growth of SOL to $400 by November of this year. The crypto enthusiast believes that a prerequisite for this will be a lot of meme tokens dedicated to the US presidential election campaign.

And Syncracy Capital co-founder Daniel Chung does not rule out that the cost of Solana could reach about $200 by the end of this month.

Do you believe this?