Daniel Yan: If Ethereum ETF is Approved, SOL/ETH is the Optimal Investment Choice
Kryptanium Capital founder Daniel Yan is optimistic about SOL. He looks back at the trend after the approval of the Bitcoin ETF and believes that when the ETF is approved, the focus should be on shorting ETH and considering SOL as a potential target for the next spot ETF.
Why is the approval of the Ethereum spot ETF bullish for SOL?
Daniel Yan points out that if the Ethereum spot ETF is really approved within the next two days, it is difficult to argue against the fact that the mainstream investment target for most people may be to buy ETH.
However, ETH has almost increased by 20% in the past 24 hours, while Bitcoin also experienced a 15% decrease in the weeks following its approval on January 10.
He believes that a better trade is to “buy SOL/ETH”. This may sound absurd and unpopular, but the reasons for the bullish view on SOL include:
If the Ethereum spot ETF is approved, SOL will be the next one.
ETH/BTC increased by 12% in a single week after the approval of the Bitcoin spot ETF, just as people expect for the ETH ETF.
This is not a popular trading choice.
After the approval of the Bitcoin ETF, it fell for 12 days
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. It started to rise from January 23rd (-19.17%) after falling since January 11th.
Therefore, Daniel Yan believes that at the moment of ETF approval, the focus should be on shorting ETH and considering SOL as a potential target for the next spot ETF.
Could ETH repeat the post-halving rally?
Due to the positive impact of the Bitcoin ETF and SOL’s recovery, ETH’s performance in the first half of the year is not as impressive. Andrew Kang, co-founder of Mechanism, even stated that buying SOLBTC (or SOLETH) is a better choice than going long on ETHBTC.
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Is the era of ETH and BTC over? Solana (SOL) has become the preferred base currency?
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However, historical data seems to be in favor of ETH. ETH/BTC reached a low point (0.016) in early 2020 during Bitcoin’s third halving (5/12), but it continued to rise and reached a historical high (0.08) in 2021.
Can ETH repeat history and bottom out during the halving year? Some institutions and analysts, such as Coinbase, also hold an optimistic view.
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Coinbase: Bullish on Ethereum fundamentals, ETH expected to outperform the market in the second half of the year
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Daniel Yan
ETH/BTC
Matrixport
SOL
Further reading
With the approval of the Ethereum spot ETF, more competing coins will be classified as commodities rather than securities.
Bybit Director of Financial Products Hao Yang: The market has mostly underestimated the potential of Ethereum (ETH), and it is not in direct opposition to SOL.
