
Ethereum ETFs have witnessed strong interest, while Solana ETFs eye its own breakthrough
Solana sees rapid growth and an ETF approval could further boost institutional demand
Analysts predict a Solana ETF could drive SOL to $290-$345
Ethereum has maintained a strong lead in the crypto market, boosted by its ETFs in the U.S. These ETFs provided broader access to ETH with billions in trading volume. However, Solana’s rapid rise has sparked discussions: could SOL overtake Ethereum, especially if it launches its own ETF?
Let us explore.
ETH ETFs Are a Hit With Investors
Ethereum ETFs launched in July 2024 and saw over $1 billion in first-day trading. Despite ups and downs, it’s now an established name for institutional investors. Ethereum ETFs recorded a total inflow of $420.9 million yesterday, with BlackRock’s ETHA leading at $437.51 million.
Notably, Bitcoin cannot be staked and investors holding BTC ETFs only earn from price appreciation. While Ethereum allows staking, the US ETFs currently do not offer staking, which limits potential returns.
This could change if the SEC approves staking through listed companies. Such approval could make ETFs more attractive compared with holding crypto directly.
Solana’s Expanding Ecosystem
On the other hand, Solana is having a solid streak. In Q2 2025, the network generated over $271 million in revenue and drew as many active users as all other major blockchains combined. It is also playing a growing role in stablecoin transactions, though Ethereum still leads in that space.
In September, the SEC introduced new rules that make it easier to trade not just Bitcoin and Ethereum, but a wider range of digital assets through spot funds. This move opens the door for a potential Solana ETF.
Growing Demand for a Solana ETF
Outside the U.S, investors already have access to Solana-focused products in Europe and Canada.
A U.S. Solana ETF would make the coin much easier to buy through brokers and pension accounts, lowering the entry barrier for institutional investors. Combined with CME futures and options, liquidity could improve significantly.
Momentum for Solana is strong. Solana ETPs recently recorded a new weekly record with $706.5 million inflows.
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Could Solana Have an Advantage Over Ethereum?
Bitwise CEO Hunter Horsley has highlighted Solana’s potential edge over Ethereum in staking ETFs. He noted that Ethereum’s withdrawal queues can delay returns to investors, while Solana’s faster unstaking period gives it an advantage.
Solana stands out for speed and low costs. However there are risks as well as the network had a multi-hour outage in February 2024, and its regulatory classification is still unclear.
Analysts outline three scenarios for Solana’s potential:
- In a strong inflow scenario, Solana could briefly outperform Ethereum
- In a neutral scenario, it would mostly follow overall crypto trends, leaving Ethereum ahead.
- On the downside, stricter regulations or weak investor interest could limit its impact.
On-chain metrics like active users, transaction volume, and stablecoin usage will also reveal if Solana can truly challenge Ethereum.
When Will Solana ETFs Be Approved?
The final decision on a spot SOL ETF is just days away and the approval is very likely. Polymarket traders are highly confident, giving a spot Solana ETF in 2025 around 99% chance of approval.
Crypto Tom Tucker notes that a spot Solana ETF could be a major market catalyst, with SOL prices potentially reaching $290-$345.
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FAQs
Solana could challenge Ethereum in specific areas like transaction speed and cost, but Ethereum maintains a strong lead due to its established ecosystem and massive institutional ETF inflows.
Analysts suggest a spot Solana ETF could act as a major catalyst, potentially pushing SOL’s price toward the $290 to $345 range based on increased demand and liquidity.
A Solana ETF would offer easier institutional access and potentially faster staking rewards compared to Ethereum, making it attractive for brokers and pension accounts.
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