Will Solana and Ether Outshine Bitcoin in the Near Term Amid ETF Hype?

With the launch of the spot Ethereum ETF approaches next week, market focus appears to be shifting away from Bitcoin. Adding to this, VanEck’s announcement on Thursday of filing for a spot Solana ETF has further increased interest in Solana. Amid the ETF excitement surrounding these two altcoins, it’s highly likely that Solana and Ether will outperform Bitcoin in the near future

Solana and Ether Overshadow BTC Price Performance

With Bitcoin being on a significant downtrend throughout the month of June, both Ether and Solana have managed to outperform BTC over the past month, as reported by Bloomberg.

Soon after the news of the spot Solana ETF filing, the Solana price rallied all the way to $150 registering double-digital gains. The Bloomberg report notes just like Bitcoin enjoyed a massive bull run following the launch of spot Bitcoin ETFs earlier this year in January, Ether and Solana could follow a similar trajectory.

Also Read: Bloomberg Analyst Predicts Solana ETF To Launch In 2025

The US SEC Chairman Gary Gensler recently stated that the review process for spot Ethereum ETF applications is going smoothly. Some of the top market analysts are expecting the Ether ETFs to go live next week around July 2-4. Big players like VanEck have started making preparations beforehand by announcing zero fees for the spot Ether ETFs. As per Galaxy Digital Holdings LP, this investment product can see inflows of around $5 billion during the first six months of launch.

Also Read: Ethereum Price Eyeing $5,000 As $15B Spot Ethereum ETF Inflows Linger

Key Opportunities Ahead for SOL

On Thursday, June 27, cryptocurrency market maker GSR stated that the approval of the spot Solana ETF in the US has a higher chance if Donald Trump resumes power for the next term.

“Solana is poised for a spot ETF if and when additional spot digital asset ETFs are allowed in the U.S., and the impact on price may just be the largest yet,” the GSR report noted.

A recent report draws parallels between SOL’s potential price movement and Bitcoin’s surge following its own spot ETF approval. The report outlines three possible scenarios for Solana’s price increase:

1. A bear case with a 1.4x price jump.
2. A base case estimating a 3.4x increase.
3. A “blue sky” scenario predicts an 8.9x rise, representing the most optimistic inflow estimates.

GSR has issued an “ETF Possibility Score” based on two factors: decentralization and potential demand. As per GSR, Solana scored positive on both metrics, ranking immediately after Ethereum. “Solana is next, should additional spot digital asset ETFs be permitted in the U.S.,” the report ultimately concludes.

Note that GSR itself holds a large amount of Solana (SOL). It noted that crypto has become a central issue for the upcoming 2024 US elections.