Solana ETFs May Struggle in U.S. Market Despite Potential Breakthrough via DePIN

• Solana ETFs might not generate significant interest from U.S. investors, according to an executive at Sygnum Bank.
• Research from Sygnum’s Head of Research indicates low assets under management (AUM) for Solana compared to Bitcoin.
• Solana’s potential breakthrough might lie in the Decentralized Physical Infrastructure Network (DePIN), as suggested by a Syncracy Capital co-founder.

Discover the fluctuating interest in Solana ETFs and potential opportunities through DePIN, adding new dimensions to the crypto market landscape.

Low U.S. Demand for Solana ETFs

Sygnum Bank’s Head of Research, Katalin Tischhauser, has suggested that approved U.S. spot Solana (SOL) ETFs may not attract substantial investments. This opinion stems from the comparably low AUM for Solana products like the Grayscale Solana Trust (GSOL), which stands at $67 million, a stark contrast to Grayscale’s Bitcoin Trust (GBTC), which previously peaked at nearly $30 billion.

Current Market Comparisons

Tischhauser pointed out that Solana’s AUM reveals its relative lack of renown compared to Bitcoin. Given this context, she anticipates that demand for future SOL ETFs among U.S. investors will be limited. This viewpoint comes as several asset managers, including VanEck, Franklin Templeton, and 21Shares, submitted spot SOL ETF applications to the SEC, while BlackRock refrained, citing low client demand for Solana in the near term.

The DePIN Potential for Solana

Ryan Watkins, co-founder of Syncracy Capital and ex-Messari Crypto analyst, holds a more optimistic view regarding Solana’s future through the realm of Decentralized Physical Infrastructure Network (DePIN). Watkins suggested that DePIN could become as pivotal for Solana as decentralized finance (DeFi) was for Ethereum in 2020. Given Solana’s growing authority within DePIN projects such as Helium (HNT), this avenue could significantly influence its market position.

Assessing Market Impact and Adoption

Watkins emphasizes that DePIN might represent the next substantial evolution in crypto that sees real-world application, following stablecoins. If Solana can harness and lead within this sector, it may alter the current investor sentiment. However, it remains uncertain whether this potential will suffice to elevate U.S. investor engagement with Solana ETFs.

Conclusion

While initial insights indicate limited demand for Solana ETFs in the U.S. market, the Decentralized Physical Infrastructure Network could provide a transformative path forward for Solana. Investors should observe how Solana’s involvement in DePIN projects unfolds, potentially reshaping its market standing and influencing future investment flows.