Analyst Predicts Solana as the Next ETF Candidate After Ethereum
Key Insights
The crypto community is excited about the Ethereum ETFs approval by the SEC this week.
Daniel Yan believes Solana might be next in line for an ETF due to its growth, and similarities with Ethereum in its journey against Bitcoin
Yan argues that Solana currently faces less competition compared to Ethereum, and might benefit from an Ethereum ETF approval.
On the flipside, QCP Capital analysts predict that Ethereum could reach $4,000 or $5,000 by year-end if ETFs are approved.
The firm also warns of a potential decline back to $3,000 for Ethereum if the ETFs are rejected.
The crypto community has been buzzing with excitement amid the ongoing rallies on Ethereum and the rest of the altcoin market.
There has been a marked decrease in Bitcoin’s dominance over the last three days, and the Ethereum whales have entered a buying spree of sorts, as outlined in this recent tweet.
An Ethereum whale buying spree
Why did the whales buy more than $300 million worth of ETH in 24 hours, and why did Ethereum travel from around $3,200 to $3,700 in less than two days?
Ethereum ETFs!
At least 5 of the Ethereum ETF applicants that have submitted their Amended 19b-4 filings on request from the SEC, according to Bloomberg’s James Seyffart.
This means that this week might be the one in which spot Ethereum ETFs get ushered into the world.
So far, while Bitcoin and Ethereum have been the main focus of these discussions, let's go over why this analyst believes that Solana might be next in line, and what this might mean for investors.
The Ethereum ETF Hype
Recent discussions around these incoming Ethereum ETFs have been heating up lately, especially how the SEC is expected to make a decision on them this week, on 23 May.
Considering the pressure on the SEC to approve these Ethereum ETF filings, Eric Balchunas, a senior analyst at Bloomberg also tweeted this week, raising the odds of an ETF approval from 25% to 75%.
The odds are in favour of an approval
In light of these recent developments, all the stars seem to have aligned towards the approval of these ETFs, and both issuers and investors have been paying rapt attention.
But what about Solana?
Solana Might Be the Dark Horse
Nobody, however, seems to be talking about Solana, which has rivalled Ethereum in terms of growth over the last two years.
Daniel Yan, the co-founder of Matrixport, sees Solana though.
Solana to outperform ETH
In a recent tweet, Yan emphasized that Solana might be the next in line for an ETF, considering the parallels between Ethereum and Bitcoin's journey.
Yan notes that when the first Bitcoin ETF was approved, a new wave of interest was triggered in Ethereum.
This time around, considering how Solana is the next in line for an ETF, the altcoin may rally alongside Ethereum if/when we see an approval.
Moreover, Yan believes that unlike Ethereum, which has the most competition from other defi and smart contract platforms, Solana is relatively unchallenged, and the scarcity could work in its favour.
Finally, Yan emphasized that a long on the SOL/ETH pair is a better trade than ETH/USDT.
This is because if the Ethereum ETFs get a green light, Solana might tap into the spillover effect.
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