CoinJazeera reports that Solana ETF is expected to be approved. Cryptocurrency market maker GSR released a report on Thursday expressing optimism about Solana’s outstanding technology and changes in the US political landscape, and announced a long position in SOL. The company believes that after the Bitcoin spot ETF in January and the expected Ethereum spot ETF to be launched this summer, the Solana spot ETF may be the next cryptocurrency to be promoted by asset management companies. (The release of this report was earlier than the submission of the Solana ETF application by asset management company VanEck.)
GSR analysts wrote in the report: “With Trump’s support for the cryptocurrency industry, change has begun, which in turn has led Democrats to relax their stance on digital assets in the election year. Although the current legislative and regulatory environment is unlikely to adopt rules supporting the launch of multiple spot digital asset ETFs, the Trump administration and liberal SEC commissioners may be able to do so, and the real possibility will be opened up with the advancement of the digital asset market structure bill that determines securities and commodities.”
According to GSR’s scoring criteria, Solana’s market demand and decentralization make it a cryptocurrency that is likely to launch an ETF after Bitcoin and Ethereum.
Solana’s technological advantages
In addition, GSR also listed three core reasons why Solana’s technology has a competitive advantage. The first is Solana’s “Proof of History” (PoH) technology. “This technology is similar to the alternating transmission of signals by cellular towers to avoid mutual interference. In Solana’s network, each node (or validator) can independently generate blocks when it is their turn, without waiting for other nodes to reach consensus on the current block state. This brings huge advantages in speed and scalability.”
Secondly, Solana’s blockchain technology significantly improves network processing power (throughput) by allowing “parallel transaction processing”. This method uses the main way to speed up modern computing technology: increasing the number of processor cores rather than simply improving the efficiency of each core.
Finally, GSR pointed out that Solana’s “historical high hardware and bandwidth requirements optimize speed and security”, but at the same time sacrifices decentralization. However, with the decrease in costs, Solana has the potential to solve the “blockchain impossible triangle” in the future and ultimately achieve the vision of synchronizing the global state at the speed of light.
SOL price prediction
Regarding the native token SOL, GSR pointed out that since Bitcoin rose from $27,000 (when “market participants began to believe that the possibility of a US spot ETF being approved was high”) in October last year to the current approximately $63,000, an increase of 2.3 times. GSR predicts: “In the bear market liquidity scenario, Solana may grow 1.4 times, in the sideways scenario, it may grow 3.4 times, and in the bull market scenario, it may grow 8.9 times. In addition, there is reason to believe that the impact may be higher than these estimates, because unlike BTC, SOL is actively used for staking and decentralized applications, and the relationship between relative liquidity and relative scale may not be linear.”