Solana Leads Over XRP and Cardano in the ETF Race, According to GSR

GSR, a leading crypto market maker, suggests that while Cardano and Ripple’s XRP may not see an ETF approval soon, Solana has better chances. GSR’s comprehensive analysis assumes a crypto-friendly regulatory approach in the US, in which ETF approval hinges primarily on two factors – decentralization and market demand. GSR also disclosed that it has a long trade position on Solana. 

Solana Impressive Initiatives

According to GSR, Solana excels in both the criteria which place it well ahead of its counterparts. The blockchain platform displays a progressive move towards decentralization with its upcoming Firedancer client. It also captures significant market demand. 

Solana’s initiatives on decentralization are also substantial. With Firedancer aimed at diversifying its network client base, it is an important step to reduce central control and enhance network resilience. Solana’s market demand is also equally gripping as the asset has consistently displayed strong market performance and high trading volumes indicating investor confidence and a potential for sustained demand. 

All these factors make Solana a strong candidate for an ETF, where potential inflows play a key role in asset selection. 

Who has The Highest ETF Possibility Score?

GSR considered the decentralization score and demand score to calculate a metric, the ETF possibility score. Ethereum has the highest ETF possibility score which was followed by Solana and NEAR Protocol. Altcoins like Avalanche, Aptos, ADA, XRP, and Cosmos have a negative ETF possibility score.  GSR wrote that the results suggested Solana is next, should the additional spot digital asset ETFs be permitted in the US. 

Furthermore, GSR’s analysis also digs into the potential impact of ETF approval on Solana’s price. Drawing parallels with Bitcoin’s ETF journey which facilitated its price surge, Solana also could experience a similar boost. GSR outlines several scenarios, from conservative estimates of a 1.4x increase in price to an optimistic 8.9x jump under favorable conditions.

Solana’s Strengthening ETF Prospects

Vaneck’s recent move to file for a Solana spot ETF further strengthened the case for Solana’s ETF prospects, highlighting the asset’s growing institutional appeal. 

Notably, in a previous conference, Brad Garlinghouse said “I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great”, as the buzz around ETFs continues to grow.

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