Solana spot ETF up next if Ethereum ETF is approved: analyst

With the increasing approval of crypto ETFs, it looks like Solana might be next in line for a spot ETF.

Recent speculation about the approval of a spot Ethereum ETF, a financial instrument that tracks the price of Ethereum, has not only driven up Ethereum’s (ETH) price but also generated significant interest in Solana (SOL) as a strong candidate for ETF consideration. If the trend of crypto ETFs gaining approval continues, Solana seems due for a spot ETF.

Solana spot ETF ‘next in line’

Daniel Yan, co-founder of Matrixport, suggested on X that a strategic ETF investment opportunity is coming for investors. Citing Bitcoin’s 15% decline after ETF approval, Yan suggested a better trade: “A better trade I will argue for is: ‘BUY SOL/ETH’. This may sound absurd and definitely unpopular. Reasons are: 1) SOL will be the No.1 next in line if ETH ETF get approved.”

Ethereum’s price has skyrocketed over 20% in the past 24 hours, positively impacting the broader altcoin market. Most major cryptocurrencies, such as Solana and XRP, have also experienced significant gains today.

Bigger profits amidst less competition

In his X post, Yan noted that Solana is up next for an ETF because of the historical trend observed in the market, where approving a Bitcoin ETF led to increased attention and investment in Ethereum. Yan alluded that if Ethereum were to get approval for an ETF, it might lead to increased interest in Solana as well, possibly causing its price to surge.

Yan suggested investing in Solana instead of Ethereum as it may offer a more promising trading opportunity with greater potential for gains. There is less competition in the Solana market, indicating a higher possibility of profits compared to Ethereum. This is especially true if investors start shifting their focus to Solana after positive developments in the Ethereum market. This shift would take place in the near future, after the SEC’s ruling on an Ethereum ETF. 

The SEC’s upcoming deadline to rule on a spot Ether ETF is on May 23.

At the time of writing, SOL traded at $176.08.