Following the launch of the first US Solana (SOL) exchange-traded fund (ETF), Bybit analysts believe cryptocurrencies could be in for a multi-quarter rally driven by institutional demand.
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The era of Solana ETFs will “reshape” price trajectory
On Friday, crypto exchange Bybit discussed the potential impact of the recently launched Bitwise Solana Staking ETF (BSOL) and Grayscale Solana Trust ETF (GSOL) on the long-term story and performance of altcoins.
The exchange noted in its Crypto Insights report that altcoins have joined Bitcoin (BTC) and Ethereum (ETH) as one of the digital assets with regulated intermediary access in the United States, marking a significant milestone that could reshape “price trajectory and market structure for years to come.”
The report highlighted that SOL’s performance is likely to benefit from the global expansion of SOL-focused products. Notably, Hong Kong also approved and launched the first Solana Spot ETF by China Asset Management in late October. Meanwhile, Brazil and Canada also host the Solana ETF, creating a “multi-jurisdictional framework that enhances global liquidity and price discovery.”
Nevertheless, the crypto exchange believes that the most significant impact will be the “change in the narrative they catalyze”, as cryptocurrencies are “no longer just high-beta altcoins favored by retail traders, but are now regulated, yield-producing assets with institutional access and global circulation.”
This rebrand aligns with Solana’s technological evolution as its role in powering tokenized treasuries, real-world assets, and permissioned stablecoin issuance makes it the foundational layer of the next generation of financial infrastructure.
The exchange argued that as the macro environment stabilizes and ETF inflows increase, Solana may move away from speculative assets to offering strategic allocations to diversified portfolios.
SOL “At the top of a multi-quarter rally”
The SOL-based investment product has recorded more than $300 million in inflows since its launch last week, indicating strong institutional demand for the Solana ETF, according to data from Pharcyde Investors.
However, during the ETF’s first trading week, altcoin prices fell by about 8%. Furthermore, SOL’s price has fallen nearly 20% on a weekly basis, hitting a four-month low of $144 earlier this week.
Despite the short-term volatility, Bybit asserts that the ETF listing “represents a tectonic change in the way SOL is accessed, traded, and recognized,” dramatically expanding SOL’s investor base.
The report highlighted that this subdued reaction reflects the “selling news” dynamics seen in the BTC and ETH ETF approvals. Both cryptocurrencies experienced short-term corrections after the launch of their respective spot ETFs before recovering with sustained inflows.
“Solana may be following a similar pattern, with early profit-taking and whale rotation, such as Jump Crypto’s large on-chain transfers, temporarily dampening upside momentum,” Byvitt asserted.
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The report pointed to Bitwise’s calculations that SOL’s market capitalization could increase by 30-50% for every $1 billion in ETF inflows. As a result, if inflows reach $2 billion to $3 billion next year, the cryptocurrency could return to its all-time high (ATH) level and even rise toward $300 to $350.
“If historical patterns hold, Solana could be on top of a multi-quarter rally that redefines its place in the crypto hierarchy,” the exchange concluded.
As of this writing, Solana is trading at $154, down 1% on a daily basis.
Featured image from Unsplash.com, chart from TradingView.com