Bitrabo Editorial
With the buzz surrounding a possible Ethereum ETF approval, investors are turning their attention to Solana as the next potential candidate for ETF consideration. Daniel Yan, co-founder of Matrixport, suggests a strategic shift towards Solana over Ethereum.
Potential for Solana in ETF Approval Lineup
Yan’s analysis on market reactions post major ETF approvals, drawing from historical data after the Bitcoin ETF approval, points towards considering Solana strategically amidst the Ethereum ETF anticipation.
Following the acceptance of the Bitcoin ETF, Bitcoin experienced a -15% drawdown in the weeks that followed, indicating a cautionary signal for those eyeing an Ethereum ETF approval.
Yan recommends a “BUY SOL/ETH” trading approach based on three key observations:
- Next ETF Candidate: Solana could likely be the next cryptocurrency in line for an ETF post an Ethereum approval, potentially leading to increased investor interest and a surge in SOL value.
- Market Movements: Similar to the ETH/BTC pair’s surge after the Bitcoin ETF approval, there could be momentum favoring Solana against Ethereum, boosting its value.
- Trade Opportunity: With Ethereum drawing significant attention, Solana presents a less crowded trade option with potential for higher gains based on ETF speculation dynamics.
Recent regulatory updates like the encouragement for issuers to update their 19b-4 filings by the US SEC have raised hopes for spot Ethereum ETF approvals. This has led to increased confidence in the market, with Bloomberg analysts raising the approval likelihood estimate from 25% to 75%.
The positive sentiment around Ethereum’s ETF potential has not only influenced Ethereum’s market standing but has also impacted other major cryptocurrencies like Solana, leading to notable gains.
Currently, SOL is trading at $180.08.