While Solana does not currently have an exchange-traded fund, a prominent supporter of the asset is optimistic that such a product could emerge in 2025—and believes it stands a strong chance of outperforming Ethereum’s similar offerings.
Kyle Samani from Multicoin Capital, who is a significant investor in SOL and numerous related protocols, has been advocating for a favorable approach from the Securities and Exchange Commission (SEC) regarding a SOL ETF. Thus, his optimistic outlook is hardly surprising.
During a recent appearance at Blockworks’ Digital Asset Summit in New York City, Samani shared his thoughts on why he thinks Solana is better positioned to attract traditional investors than Ethereum was. The key factor lies in the fees generated on-chain relative to the asset’s overall value.
“One major reason the ETH ETF didn’t see an enthusiastic reception is that many investors looked at ETH and asked, ‘where are the fees?'” Samani explained.
According to him, they found insufficient evidence to justify investing at its elevated prices.
Shareholders typically consider a company’s price-to-earnings ratio when determining if it’s overvalued or undervalued; basically, this informs their investment timing. Although the crypto market lacks such a straightforward metric, blockchains still produce revenue and tokens that can be analyzed in a similar manner.
Samani posits that Solana’s theoretical P/E ratio is significantly more appealing from an investment perspective compared to Ethereum’s. His calculations suggested that Solana is trading at 30 to 50 times its P/E, while Ethereum sits near 1,000 times.
Solana’s P/E ratio is “much more aligned with high-growth tech stocks,” he noted.
If this reasoning holds true, traditional investors might perceive Solana as having greater potential than Ethereum, leading them to invest accordingly.