Multicoin’s Samani Backs Solana ETF, Says It Could Outshine Ethereum’s
Solana generates significantly higher fees relative to its market cap than Ethereum, making it a more attractive investment, argues Kyle Samani.
While Solana (SOL) has yet to secure its own exchange-traded fund (ETF), one of its most vocal supporters believes that could change in 2025—and that a SOL ETF could outperform Ethereum’s equivalent.
Kyle Samani, co-founder of Multicoin Capital and a major investor in Solana and related projects, has been advocating for the U.S. Securities and Exchange Commission (SEC) to approve a SOL ETF. His bullish stance isn’t surprising, but he laid out his reasoning Tuesday at Blockworks’ Digital Asset Summit in New York.
Samani argues that Solana is fundamentally better positioned to attract traditional investors than Ethereum, primarily due to on-chain revenue and valuation metrics.
“A lot of the reason why the ETH ETF didn’t see overwhelming demand is that investors looked at Ethereum and said, ‘Show me the fees,’” Samani said.
According to him, many investors weren’t convinced that Ethereum’s revenue justified its valuation. In traditional finance, stock traders assess a company’s price-to-earnings (P/E) ratio to determine whether it’s undervalued or overvalued. While crypto lacks a direct equivalent, blockchain networks generate fees and revenue that can serve as a comparable metric.
Samani estimates that Solana’s implied P/E ratio is significantly more attractive than Ethereum’s, suggesting SOL trades at 30 to 50 times its revenue, while Ethereum’s multiple is closer to 1,000.
“Solana’s P/E ratio is much more in line with high-growth tech stocks,” he noted.
If this thesis holds, institutional investors could see more potential upside in Solana compared to Ethereum, boosting demand for a SOL ETF when it eventually launches.
