Why Solana’s ETF is the New Darling of Wall Street (Sorry, ETH!)

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What to know:

  • In a rather audacious proclamation, Multicoin Capital’s Kyle Samani suggests that a Solana-based exchange-traded fund could outshine its Ethereum counterparts, thanks to Solana’s knack for fee generation and its modest market capitalization.
  • Of course, Samani is a significant investor in SOL, which makes his enthusiasm for a successful ETF launch rather self-serving, wouldn’t you say? 🤔

While Solana is yet to grace the world with its own exchange-traded fund, one of its most fervent advocates is wagering that this Wall Street-friendly contraption could emerge in 2025 — and he’s convinced it’s poised to trample Ethereum’s various similar offerings. How quaint! 🐾

Our dear Kyle Samani, a prominent investor in SOL and a plethora of lesser-known protocols, has been rather vocal in his appeals to the Securities and Exchange Commission (SEC) to bestow their blessings upon a SOL ETF. His bullish rhetoric, therefore, might not come as a shock to anyone with a pulse.

At the Blockworks’ Digital Asset Summit in New York City, Samani elaborated on why he believes Solana is better suited to charm traditional investors than Ethereum ever was. Spoiler alert: it’s all about the money, darling! 💰

“A lot of the reason why the ETH ETF didn’t have a super strong reception was that many investors looked at ETH and said, ‘show me the fees,’” Samani quipped. Apparently, they were left wanting, as the evidence to justify investing at such lofty prices was rather scant.

In the world of stock trading, investors often scrutinize a company’s price-to-earnings ratio to determine whether it’s a bargain or a bust; crypto, however, lacks such a tidy metric. Yet, blockchains still churn out revenue and tokens that can be mashed together for a similar effect. How delightful! 🍰

Samani posits that Solana’s theoretical P/E ratio is far more palatable from an investment perspective than Ethereum’s. His calculations suggest that Solana trades at a mere 30 to 50 times its P/E, while Ethereum languishes at a staggering 1,000 times. Oh, the humanity!

“Solana’s P/E ratio is much more in line with high-growth tech stocks,” Samani declared, as if that were a revelation. If his logic holds water, one might expect traditional investors to see Solana as the belle of the ball, with Ethereum left to sulk in the corner. 🎉

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2025-03-18 20:00