Multicoins Samani Explains Why SOL ETF Could Trounce ETHs
Solana doesnt yet have an exchange-traded fund, but one of the assets biggest backers is betting the Wall Street-friendly vehicle could come in 2025 and believes its well-positioned to trounce Ethereums various similar products.
Multicoin Capitals Kyle Samani a major investor in SOL and countless subordinate protocols has been publicly pressing the Securities and Exchange Commission (SEC) to look favorably upon a SOL ETF. His bullish pronouncements therefore might come as little surprise.
But onstage Tuesday at Blockworks Digital Asset Summit in New York City, Samani explained his view why Solana is better placed to appeal to traditional investors than Ethereum did. Its all about the money: the fees being generated on-chain, compared to the value of the assets totality.
A lot of the reason why the ETH ETF didnt have a super strong reception was a lot of investors looked at ETH and said show me the fees, Samani said.
By his telling, they didnt find much proof to justify investing at its high prices.
Stock traders often look at a companys price to earnings ratio in deciding whether its over or undervalued; in other words, when to invest. Crypto doesnt have such a clean metric, but blockchains still have revenue and tokens that can be mushed together for similar effect.
Samani believes Solanas theoretical P/E ratio is much healthier from an investing standpoint than Ethereums. His onstage math placed Solana as trading at 30 to 50 times its P/E whereas Ethereum is trading closer to 1,000 times.
Solanas P/E ratio is much more in line with high-growth tech stocks, Samani said.
If the logic plays out then traditional investors might be expected to believe Solana has more upside than Ethereum, and invest accordingly.
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