As reported by CoinDesk, Solana, a leading blockchain asset, has yet to receive approval for an exchange-traded fund (ETF). However, key supporters remain optimistic that a Solana ETF could emerge by 2025. Kyle Samani of Multicoin Capital, a prominent investor in Solana and its ecosystem, has been actively pushing for the Securities and Exchange Commission (SEC) to greenlight a Solana ETF, aligning with his strong belief in the asset’s potential.
Speaking at Blockworks’ Digital Asset Summit in New York City, Samani outlined why Solana could be more attractive to institutional investors than Ethereum. He stressed the significance of on-chain fees in determining blockchain valuation. According to Samani, the lukewarm response to Ethereum’s ETF stemmed from investor doubts about its fee generation capabilities.
He compared blockchain investment analysis to stock market metrics, where traders evaluate a company’s price-to-earnings (P/E) ratio. While cryptocurrencies don’t have direct P/E equivalents, blockchains generate revenue and tokens, offering a comparable evaluation method. Samani argued that Solana’s estimated P/E ratio of 30 to 50 times is far more favorable than Ethereum’s, which he approximates at 1,000 times.
Samani further explained that Solana’s valuation aligns with high-growth tech stocks, making it a potentially more attractive option for traditional investors. If this perspective gains traction, investors may see Solana as having stronger growth potential than Ethereum, increasing the likelihood of a future Solana ETF.
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