Solana ETF Could Outshine Ethereum’s, Says Multicoin’s Samani

Kyle Samani believes Solana’s revenue generation and valuation metrics make it a stronger bet for institutional investors than Ethereum.

Although a Solana (SOL) exchange-traded fund (ETF) has yet to hit the market, Multicoin Capital’s Kyle Samani is confident that one will launch in the near future—and when it does, he argues it could outpace demand for Ethereum’s ETF.

Speaking at Blockworks’ Digital Asset Summit in New York, Samani outlined why he sees Solana as a more compelling investment for traditional finance. He pointed to Solana’s ability to generate substantial on-chain fees despite having a significantly lower market capitalization than Ethereum.

“The reason the ETH ETF didn’t see overwhelming demand is because institutional investors examined Ethereum’s fundamentals and asked, ‘Where is the revenue?’” Samani explained.

Traditional markets use price-to-earnings (P/E) ratios to assess a stock’s valuation, and while crypto lacks direct earnings, blockchain networks generate fees that provide a comparable metric.

Samani argued that Solana’s implied P/E ratio is far more attractive than Ethereum’s. He estimates that SOL trades at 30 to 50 times revenue, while Ethereum’s valuation is closer to 1,000 times revenue.

“This aligns Solana’s valuation more closely with high-growth tech stocks,” he noted.

If institutional investors apply the same valuation principles they use in traditional markets, Samani believes Solana will appear more attractive than Ethereum, making a potential SOL ETF a bigger success when it eventually launches.