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Solana ETF may be on the way, says Matrixsport founder But this will not happen until Ethereum ETF is approved.
The recent buzz surrounding the possible approval of an Ethereum spot ETF has not only boosted the price of Ethereum, but also generated significant interest in Solana as a strong candidate for ETF consideration. Amidst this optimism, Daniel Yan, co-founder of MatrixSports, has proposed a strategic pivot for investors to focus on Solana (SOL) in relation to Ethereum.
In a post on X, Ian outlined the market’s immediate reactions to the ETF’s major approvals and provided a strategic analysis for the currency’s potential future moves. His insight is derived from historical market behavior observed after the approval of the Bitcoin (BTC) ETF.
Following the acceptance of Bitcoin ETF cash on January 10, Bitcoin experienced a significant decline of -15% in the weeks following the event. This pattern of an initial rally followed by a sharp pullback may provide a cautionary framework for investors eyeing the potential confirmation of Ethereum ETFs.
Yan suggests that while the intuitive reaction might be to invest directly in Ethereum, given its nearly 20% increase in value in the past 24 hours, a more nuanced approach could be beneficial.
Ian advocates the “Buy SOL/ETH” trading strategy. This recommendation is based on three key observations:
Next ETF Candidate: Ian believes that Solana could very well be the next cryptocurrency to be considered for an ETF if the Ethereum ETF is approved. This prediction could lead to increased investor interest and a potential price increase in SOL.
Relative Market Movements: Following the approval of the Bitcoin ETF, the ETH/BTC pair saw a roughly 12% gain over the week. This is likely due to expectations that Ethereum may follow this trend. Similar speculative momentum can be expected for Solana, which could boost its value against Ethereum.
Uncongested Trading: The current market focus is largely on Ethereum, making it a potentially crowded business. In contrast, Solana offers a less saturated option and higher relative profit potential based on the speculative dynamics of the ETF.
The broader context of Yan’s strategy includes the latest regulatory developments in which the US SEC has encouraged issuers to update their 19b-4 filings, a move interpreted as a significant step toward possible approval of Ethereum spot ETFs. According to Bloomberg senior analysts, this has increased the confidence of experts and increased the probability of approval from 25% to 75%.
Optimism surrounding the Ethereum ETF outlook has not only boosted Ethereum’s market position, but has had a positive impact on other major cryptocurrencies, including Solana, which saw strong gains in response to overall market sentiment.
At press time, SOL was trading at $180.08.
