GSR Forecasts Solanas Value to Surge Ninefold to 1305 Amid Anticipated ETF Endorsement

The price of Solana (SOL) is anticipated to reach $1300 once the Securities and Exchange Commission (SEC) approves a spot Solana Exchange-Traded Fund (ETF), according to experts. Currently, Bitcoin (BTC) and Ethereum (ETH) are the only cryptocurrencies that meet the requirements for consideration as a spot ETF. However, the potential for approval could change with the election of a pro-crypto president. The news of VanEck and 3iQ filing for a spot Solana ETF in the US and Canada, respectively, has generated interest and could lead to a price rally. In a report titled “Is Solana Next?”, market maker GSR analyzed the possibilities of approval and its impact on the SOL price. The report praised the evolution of the Solana network, citing its large number of decentralized applications, cheap transaction costs, and growing user and developer communities. The report explained that for an asset to qualify for an ETF, it must have a federally-regulated futures market and a futures-based ETF. Currently, only Bitcoin and Ethereum meet these criteria. The level of decentralization and potential demand are key factors for the approval of the next spot ETF. Ethereum, Solana, and NEAR were identified as the only crypto projects with above-average demand scores, while Ethereum, Solana, Avalanche (AVAX), and APT had higher decentralization scores. However, most of these assets have been flagged by the SEC as securities. The GSR report outlined three scenarios for the impact of a potential spot Solana ETF on the SOL price. Under the bear case, the inflow of the potential ETF would be minimal, resulting in a 1.4x surge in the SOL price. Under the baseline scenario, the price would surge by 3.4x, and under the blue sky scenario, the price could increase by 8.9x, reaching as high as $1,305. Currently, SOL is trading at $144, with a 2.9% decline in the last 24 hours.