Kryptanium Capital Founder Daniel Yan is optimistic about SOL. He reviewed the performance of Bitcoin ETF after its approval and believes that at the moment of ETF approval, ETH should be bearish, and SOL is a potential target for the next spot ETF approval.
Why is the approval of Ethereum spot ETF favorable for SOL?
After the approval of Bitcoin ETF, it dropped for 12 days.
Will ETH experience a post-halving rally?
According to Daniel Yan, if the Ethereum spot ETF is indeed approved within the next two days, it is difficult to argue that the mainstream investment target for most people would be to buy ETH.
However, in the past 24 hours, ETH has almost increased by 20%, while Bitcoin decreased by -15% in the weeks following its approval on January 10th.
He believes that a better trade would be to “buy SOL/ETH.” This may sound absurd and unpopular, but the reasons for the bullish outlook on SOL include:
If the Ethereum spot ETF is approved, SOL will be the next one.
ETH/BTC increased by 12% in a week after the approval of the Bitcoin spot ETF, just as people had expectations for the ETH ETF.
This is not a popular trading choice.
According to OKX’s ETH/BTC trading pair, ETH increased by nearly 30% (28.04%) from January 9th to 12th, just before the approval of the Bitcoin ETF, while Bitcoin did not immediately rise at the time of approval. It started to rise from January 23rd (-19.17%).
Therefore, Daniel Yan believes that at the moment of ETF approval, the focus should be on being bearish on ETH and bullish on the potential target SOL for the next spot ETF approval.
Due to the positive news of the Bitcoin ETF and the recovery of SOL, ETH’s performance in the first half of the year has not been as impressive. Andrew Kang, Co-founder of Mechanism, even stated that buying SOLBTC (or SOLETH) is a better choice than going long on ETHBTC.
However, historical data seems to favor ETH. ETH/BTC reached a low point (0.016) in early 2020, during the third Bitcoin halving, but it subsequently soared and reached a historical high (0.08) in 2021.
Will ETH be able to repeat history and rebound after the halving? Some institutions and analysts, such as Coinbase, hold an optimistic view.
Daniel Yan
ETH/BTC
Matrixport
SOL
Read more:
Will Ethereum spot ETF approval categorize more competing coins as commodities rather than securities?
Hao Yang, Director of Financial Products at Bybit: The market has largely underestimated the potential of Ethereum (ETH), and it is not a binary opposition to SOL.