Daniel Yan, co-founder of Matrixport, wrote an article that is optimistic about SOL. He reviewed the trend after the adoption of the Bitcoin ETF and believed that the protagonist ETH should be short when the ETF is passed, and bullish on SOL, the next potential target of the spot ETF.
Why is Ethereum spot ETF bullish via SOL?
Daniel Yan pointed out that if the Ethereum spot ETF is really approved in the next two days, the mainstream investment target for most people may be to buy ETH, which is difficult to refute.
However, ETH has gained almost 20% in the past 24 hours, while Bitcoin has also fallen by -15% in the weeks since the approval on January 10.
He thinks the better trade is “Buy SOL/ETH.” This may sound ridiculous and never popular, but the reasons to be bullish on SOL include:
If an Ethereum spot ETF is approved, SOL is next.
ETH/BTC gained 12% in a single week following the approval of a Bitcoin spot ETF, as one would expect from an ETH ETF.
This is not a popular trading option.
Daniel Yan tweets Bitcoin ETF down for 12 days after passing
According to OKX’s ETH/BTC trading pair, ETH rose by nearly 30% (28.04%) from January 9 to 12, the eve of the adoption of the Bitcoin ETF.
However, Bitcoin did not start to rise immediately. It fell from January 11 to 23 (-19.17%) before starting to rise.
Therefore, Daniel Yan believes that when the ETF passes, we should be bearish on the protagonist ETH, and bullish on the next potential target of the spot ETF, SOL.
ETH/BTC Daily ETH repeats its post-halving rise?
Due to the positive effects of Bitcoin ETFs and the recovery of SOL, ETH's performance in the first half of the year was not so impressive. Andrew Kang, co-founder of Mechanism, even bluntly stated that SOLBTC (or SOLETH) has become a better choice than long ETHBTC. .
(The era of ETH and BTC is over, has Solana (SOL) become the first choice for currency standards?)
However, historical data seems to be on the side of ETH. ETH/BTC also reached a low (0.016) at the beginning of the year when Bitcoin was halved for the third time in 2020 (5/12), but it has soared since then, and in 2021 hit a record high in 2018 (0.08).
Can ETH repeat history and bottom out in the halving year? Some institutions and analysts such as Coinbase also took an optimistic view in the report.
(Coinbase: Optimistic about Ethereum’s fundamentals, ETH will outperform the market in the second half of the year)
ETH/BTC monthly line
This article, Matrixport co-founder: If the Ethereum ETF passes, SOL/ETH is the best target first appeared in Chain News ABMedia.
