Analysts from market maker GSR outlined potential price targets for Solana (SOL) if spot ETFs are launched based on the token.
Price Predictions for Different Scenarios
According to their estimates, SOL’s price could increase by 1.4 times in a “bearish” scenario, 3.4 times in a “baseline” scenario, and 8.9 times in a “blue sky” scenario.
These scenarios consider capital inflows into existing Solana-based investment products compared to similar Bitcoin-based products from 2021 to 2023 (before spot ETFs in the U.S.).
Bearish Scenario: Modest Inflows
In the bearish scenario, capital in Solana-based investment products would be 2% of that in similar Bitcoin products. This modest inflow reflects cautious investor sentiment.
Baseline Scenario: Moderate Growth
The baseline scenario suggests a 5% capital inflow into Solana-based products compared to Bitcoin. This moderate growth assumes stable market conditions and steady interest in Solana.
Blue Sky Scenario: Optimal Conditions
The blue sky scenario assumes capital inflows into Bitcoin products at their 2021 market peak and current levels with existing spot Bitcoin ETFs. Drawing parallels, Solana-based ETFs could attract 14% of Bitcoin fund inflows in the next three years.
About GSR
London-based GSR is one of the oldest and largest market makers in the cryptocurrency market. Founded in 2013 by former Goldman Sachs traders, GSR provides liquidity and trading solutions for various digital assets.
These predictions highlight the potential impact of spot ETFs on Solana’s market value, reflecting different investor confidence levels and market conditions.
