Market maker GSR: Probability of Solana spot ETF greatly increased, surge expected to surpass Bitcoin

Market maker GSR evaluated the potential price increase of Solana in their latest report "Is Solana the Next One," suggesting that the future growth of SOL could surpass BTC by several times just based on the market beginning to anticipate the approval of a Solana spot ETF.

VanEck has applied for the first Solana ETF in the United States, Bloomberg analyst: Approval is not impossible

GSR: Increased Likelihood of Solana Spot ETF

GSR has outlined the various positives of Solana in their report:

1. Possibility of launching a spot ETF.

2. Wide-ranging applications, protocols, and a large user and developer community.

3. Technological excellence: including historical proof mechanisms, parallel transaction processing, high hardware requirements optimizing speed and security, sacrificing decentralization.

The report mainly focuses on the potential likelihood of launching a Solana spot ETF and its positive impact on prices post-launch, especially as cryptocurrencies seem to have evolved into a political issue.

Analysts at GSR pointed out that Trump's support for the crypto industry allowed the Democratic Party to relax its stance on digital assets in an election year:

While the current legislative and regulatory structure is unlikely to allow the launch of many digital asset spot ETFs, the Trump administration and liberal SEC commissioners may do so. With the emergence of the Digital Asset Market Structure Act for defining securities and commodities, the possibility has truly increased.

Solana Market Demand Ranks Third

According to GSR's evaluation criteria, Solana's market demand and level of decentralization are expected to place it in the ranks of spot ETFs alongside Bitcoin and Ethereum.

In particular, Solana ranks second in demand scoring, far surpassing the third-place Near.

SOL's Future Price Increase Surpasses BTC Again

GSR's bullish view on SOL is based on the situation where "the market begins to believe that a spot ETF will be approved," as last year BTC rose from around $27,000 in October to the current level of about $63,000.

In comparison, GSR believes that SOL could rise 1.4 times in a bear market, 3.4 times in normal conditions, 8.9 times in a bull market, and there is even reason to believe in higher price increases because SOL's functionality in the ecosystem is not similar to BTC. SOL is heavily used in staking and DeFi applications, and its liquidity and market value may not grow linearly.