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Leading
asset
manager
and
Bitcoin
Exchange
Traded
Fund
(ETF)
issuer
VanEck
has

officially
filed

a
Spot
Solana
ETF
with
the
US
Securities
and
Exchange
Commission
(SEC),
fueling
bold
growth
predictions
for
the
Solana
ecosystem. 

Market-making
firm
GSR
Markets
recently
released
a
report
shedding
light
on
the
potential
impact
of
a
Solana
ETF
and
highlighting
the
platform’s
emergence
as
part
of
the
“Big
Three”
in
the
crypto
space.

Speculation
Of
A
Solana
ETF
Approval

GSR’s

report

highlights
Solana’s
rapid
rise
within
the
cryptocurrency
industry,
positioning
it
as
a
major
player
alongside
Bitcoin
and
Ethereum. 

With
the
Bitcoin
ETF
market
already
approved
and
Ethereum
about
to
launch
a
spot
ETF
in
the
US,
GSR
predicts
that
it’s
only
a
matter
of
time
before
Solana
follows
suit,
potentially
making
the
biggest
impact. 

Related
Reading

GSR’s
analysis
highlights
three
key

technological
advancements

that
set
Solana
apart
from
its
competitors.
Firstly,
Solana’s
proof-of-history
enables
validators
to
produce
blocks
efficiently,
resulting
in
remarkable
speed
and
scalability
advantages. 

Second,
Solana’s
parallel
transaction
processing
enables
increased
throughput
and
takes
advantage
of
improvements
in
computing
speed. 

Finally,
the
company
said
Solana’s
architecture
positions
it
to
solve
the
“blockchain
trilemma”
by
achieving
global
state
synchronization
at
“unprecedented
speeds”
as
hardware
and
bandwidth
costs
decline.

In
addition,
GSR’s
report
addresses
the
likelihood
of
Solana
securing
a
spot
digital
asset
ETF.
While
the
current

regulatory
framework

requires
a
federally
regulated
futures
market
and
a
futures-based
ETF
before
a
spot
product
can
be
considered,
GSR
believes
that
the
potential
for
change
shouldn’t
be
underestimated. 

The
company
also
claims
bipartisan
support
for
the
crypto
industry,
and
shifting
attitudes
among
lawmakers
indicate
a
more
favorable
environment
for
digital
assets. 

A
Trump
administration
and
a
liberal
SEC
commissioner
could
further
pave
the
way
for
the
launch
of
spot

digital
asset
ETFs,
creating
opportunities
for
Solana
and
other
cryptocurrencies,
the
report
said.

Projected
Impact
On
SOL’s
Price

GSR
emphasizes
the
importance
of
decentralization
and
potential
demand
in
determining
the
next
spot
digital
asset
ETF. 

Factors
such
as
permissionless
participation,
developmental
control,

token
allocation,
and
stake
characteristics
contribute
to
a
blockchain’s
level
of
decentralization. 

Meanwhile,
as
indicated
by
metrics
like
market
cap,
potential
demand
serves
as
a
crucial
factor
for
issuers
when
assessing
future
inflows.
GSR
combines
decentralization
and
demand
scores
to
create
an
ETF
Possibility
score,
which
highlights
Ethereum
and
Solana
as
leading
contenders
for
the
next
spot
in
digital
asset
ETF.

Related
Reading

Drawing
parallels
to
the
effect
of
spot
Bitcoin
ETFs
on
Bitcoin’s
price,
GSR
estimates
the
potential
impact
of
a
Solana
ETF
on
SOL.
Adjusting
for
Solana’s
smaller

market
cap

relative
to
Bitcoin,
GSR
predicts
a
1.4x
to
8.9x
increase
in
SOL’s
price
under
different
scenarios. 

However,
the
report
acknowledges
that
the
impact
could
be
even
higher,
considering
SOL’s
active
usage
in
staking
and
decentralized
applications.
In
the
event
of
a
spot
ETF
approval,
GSR
suggests
that
the
potential
upside
for
SOL
presents
a
significant
opportunity
in
the
market.

As
investor
excitement
over
the
development
became
apparent,
SOL’s
price
reached
a
weekly
high
of
$151
on
Thursday,
but
in
the
past
few
hours,
SOL
has
dropped
nearly
4%
to
a
current
trading
price
of
$143. 

Featured
image
from
DALL-E,
chart
from
TradingView.com 

Go to Source
Author: Ronaldo Marquez

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