If Ethereum spot ETFs are approved, Solana (SOL) cryptocurrency could be the next contender to launch exchange-traded funds. This was stated by Matrixport co-founder Daniel Yang.
What's the trade, if ETH ETF really gets approved in two days?
The popular trade would be “BUY ETH”. Can't really argue with that but do note that ETH is almost +20% over the past 24 hours. In addition, Bitcoin had a -15% drawdown in the couple of weeks after the approval on… pic.twitter.com/xtDGHqbq81
— Daniel Yan (@_D_Y_A_N) May 21, 2024
The expert also noted that ETH paired with BTC increased by 12% after reports of the request SEC to issuers to update Form 19b-4 in product applications.
According to Yang, after the potential launch of spot funds, Ethereum may go into a correction, as was the case with Bitcoin, which dropped by 10% in the first days of ETF trading.
Another analyst under the nickname gumshoe believes that the approval of instruments based on the second largest cryptocurrency by capitalization is “more optimistic 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 attractiveWhat I don't like is that now the market will price in the approval and if it gets delayed we will nuke pic.twitter.com/UyxzvaIZeK
— gumshoe (@0xGumshoe) May 20, 2024
The user called a negative factor that now the market will evaluate each fund approval process, and in case of refusal, the sector risks experiencing a “nuclear strike.”
At the time of writing, SOL is trading at $177, having gained almost 20% over the past week. The coin's capitalization is $79.2 billion.
Previously, Merkle Tree Capital investment director Ryan McMillin predicted Solana's growth to reach $400 by November 2024. In his opinion, the catalyst will be a wave of meme coins dedicated to the US election campaign.
Co-founder of the hedge fund Syncracy Capital Daniel Chung allowed SOL quotes to return to $200 by the end of May.
CoinGecko analysts recognized the Solana network as the fastest among large blockchains. On April 6, the average daily number of transactions per second reached a record high of 1,504 amid the meme token boom.
Source: Cryptocurrency
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