Solana ETFs to Outperform Bitcoin Gains in Trump Administration, Says GSR 

Crypto market-maker GSR offered a bullish prediction for Solana ETF prospects upon their approval in the US. GSR predicts Solana ETFs will outperform Bitcoin if Republican candidate Donald Trump wins the November 4 election. 

A research report published on Thursday, June 27, by GSR, portrayed optimism for spot Solana ETF approval in the US. The cryptocurrency market maker considered that the US has an opportunity for the Donald Trump presidency that will translate to blessings for Solana. 

ETF Application to Trigger SOL Surge

The report illustrates that Solana (SOL) is the next in line for the ETF approval, similar to recently, Bitcoin and Ethereum. The spot ETF approval will become a catalyst for realizing a significant price rally for the crypto. 

GSR drew parallels with Bitcoin’s price surge following the January 10 approval of spot ETF by the US Securities and Exchange Commission (SEC). 

The report captures three scenarios for a potential Solana surge featuring a bear case estimating a 1.4X price rally. Also, a base case of 3.4X jump and 8.9X blue sky case would arise, illustrating optimistic inflow estimates.

GSR report illustrates that Solana is set for the spot ETF by leveraging the window for additional spot digital asset ETF approval within the US. The report predicts the ETFs will trigger the largest-ever surge in price.

GSR is bullish on Solana as asset management firm VanEck confirmed filing S-1 registration via a Thursday, June 27 statement for the VanEck Solana Trust. 

VanEck’s bid is the initial public attempt to unveil spot SOL ETF within the US. 

The VanEck prospectus describes the exchange-traded fund (ETF) as uniquely designed to track Solana’s price movement. 

The firm proposes to back the Trust’s shares using SOL tokens. The application reveals VanEck’s intention to list the funds on the Cboe BZX Exchange. It rules out the involvement of the sponsor and Trust in influencing action. 

Bullish Sentiment on SOL

GSR holds a bullish sentiment on Solana, citing the notable development within the US political space regarding crypto. Crypto has emerged as a potential political issue in the November 4 election.

The incumbent, Joe Biden, is portrayed as a crypto antagonist, while the presumptive Republican candidate, Donald Trump, is a pro-crypto.

The GSR acknowledges that Trump is the newfound backing of crypto, prompting the Democrats to change their stance in what appears a tight race.

The shift is apparent in the bipartisan support for the crypto framework. In particular, the report cites bipartisan support for repealing the SEC’s Staff Accounting Bulletin (SAB 121) policy, which hinders regulated banks from having crypto custody. Similarly, bipartisan support was evident in the enactment of the FIT21 framework for digital asset regulations in the House.

GSR unveiled a new metric, the ETF Possibility Score, that is related to two factors. The metric considers decentralization alongside the potential demand.

GSR reported that Solana’s positive score in both metrics only trailing Ethereum. The report concluded that Solana would be next if the US SEC were to permit additional spot digital asset ETFs.

The momentum is kept alive by the asset management firm 21Shares joining VanEck in filing an S-1 registration form on Thursday, June 27, with the SEC for a spot Solana ETF. 

The application is a critical milestone towards ushering the first spot SOL ETF in the US. The two applications came six days following the bid by 3iQ, which proposed coming just six days after a similar product launched in Canada. The filing triggered nearly a 10% rise in the SOL’s price. 

Solana to Outperform Bitcoin

GSR analysis factored Solana’s prospects relative to Bitcoin price movement following the spot ETF approval by the SEC. The analyst observed that Bitcoin’s price rose 2.3X from October last year when it was used to exchange hands for more than $60,000. GSR attributes the surge to ETF-related developments. 

The GSR report considers that Solana’s potential upside could become more significant. GSR backs the bullish prediction to the greater utility of Solana on various applications and uses cases. 

GSR noted that, unlike Bitcoin, the Solana token is actively involved in staking and decentralized utilizations.