Solana ETF Anticipated to Outperform Ethereum in 2025

According to CoinDesk, Solana, a prominent blockchain asset, is yet to have an exchange-traded fund (ETF), but its major backers are optimistic about its potential emergence in 2025. Multicoin Capital's Kyle Samani, a significant investor in Solana and various related protocols, has been advocating for the Securities and Exchange Commission (SEC) to approve a Solana ETF. His positive outlook on Solana's prospects may not be surprising given his vested interests. During the Blockworks' Digital Asset Summit held in New York City, Samani elaborated on why he believes Solana is better positioned to attract traditional investors compared to Ethereum. He emphasized the importance of on-chain fees in relation to the asset's overall value. Samani noted that the reception of Ethereum's ETF was lukewarm because investors were skeptical about its fee generation capabilities. Samani explained that stock traders typically assess a company's price-to-earnings (P/E) ratio to determine its investment potential. Although cryptocurrencies lack a straightforward metric like P/E ratios, blockchains generate revenue and tokens that can be analyzed similarly. Samani argued that Solana's theoretical P/E ratio is more favorable from an investment perspective than Ethereum's. He estimated Solana's P/E ratio to be between 30 to 50 times, whereas Ethereum's is closer to 1,000 times. Samani suggested that Solana's P/E ratio aligns more closely with high-growth tech stocks, which could make it more appealing to traditional investors. If this reasoning holds, investors might perceive Solana as having greater potential for growth compared to Ethereum, leading them to invest in Solana's future ETF.