Solana is rallying after VankEck filed for a spot in Solana ETF with the United States SEC, but will this become the king of crypto ETF? Let’s dig in.
If you are wondering why crypto is hogging all the media attention, you need not look far. Just watch how spectacular Solana’s performance has been in the last couple of months.
After the FTX collapse in November 2022, the coin crashed to as low as $8 in only a few days. Yet, fast-forwarding a year later, Solana is now in the top 5, and some asset managers are willing to have a spot Solana ETF in the United States.
As of writing, Solana is perched at fifth, only trailing the big boys, which are Bitcoin, Ethereum, USDT, and BNB.
It has been a journey. The dump to $8 and the resulting bankruptcy proceedings were catalysts for SOL’s rally to the spot rate.
Year of The Crypto ETF: VanEck Files For A Spot Solana ETF
To put it in numbers, SOL is up 16X from November 2022 lows, but holders expect even more gains.
The reason? Well, VanEck, a respected asset manager, submitted their S-1 filing to the United States Securities and Exchange Commission (SEC).
This filing paves the way for the launch of a spot Solana ETF, the first in the United States market.
Matthew Sigel, Head of Digital Assets Research at VanEck, said they were filing for this product, citing the network’s high throughput, low fee, and SOL’s existence as a utility similar to BTC and ETH.
Even so, it should be noted that the United States SEC has in the past alleged that SOL, like ADA and multiple other tokens, were unregistered securities.
This decision follows the successful launch of a spot Bitcoin ETF in Australia and another set for spot Ethereum ETF in the United States.
DISCOVER: How to Buy Bitcoin ETF in 2024 – Beginner’s Guide
Will SOL Outperform Bitcoin and Ethereum in Bull Run?
Taking to X, the observer thinks SOL will likely outperform Bitcoin and Ethereum in the coming days.
This bullish upbeat all has to do with the relative valuation of these heavyweights.
Based on their market cap, SOL is fifth with $66 billion, while Bitcoin and Ethereum command $1.2 trillion and $413 billion.
Accordingly, it will require lower buy pressure to move SOL versus ETH or BTC.
In his estimates, SOL only needs 5x less pressure than ETH and a staggering 15x less than BTC to achieve similar price movements.
Solana is changing hands at around $145, up nearly 20% from June 2024 lows.
(SOLUSDT)
From the technical candlestick arrangement, SOL remains within a bullish formation with support at $120. At spot rates, traders may consider long entries, especially if there is confirmation of yesterday’s gains.
The immediate targets should be $170 and $190 in the medium term.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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