Multicoin’s Samani Argues SOL ETF Could Outperform ETH’s

Multicoin’s Samani: Solana ETF Could Outperform Ethereum’s Due to Stronger Fundamentals

Kyle Samani argues Solana’s financial metrics make it a more compelling ETF candidate than Ethereum.

While an exchange-traded fund (ETF) for Solana (SOL) has yet to be introduced, Multicoin Capital’s Kyle Samani believes it’s only a matter of time. More importantly, he claims a SOL ETF could surpass the performance of Ethereum’s ETF due to superior economic fundamentals.

Speaking at Blockworks’ Digital Asset Summit in New York, Samani highlighted how Solana’s on-chain fee generation is significantly higher in proportion to its market cap compared to Ethereum. He suggested that this dynamic could make SOL more attractive to traditional investors.

“One of the biggest challenges for Ethereum’s ETF was that institutional investors looked at ETH and couldn’t justify the valuation based on revenue,” Samani explained.

In traditional finance, investors use the price-to-earnings (P/E) ratio to assess a company’s valuation. While blockchains don’t have direct earnings, transaction fees can serve as an equivalent metric.

Samani estimated that Solana trades at roughly 30 to 50 times its revenue, while Ethereum’s valuation is closer to 1,000 times revenue—making Solana appear much more reasonably valued.

“This puts Solana in line with high-growth tech stocks, whereas Ethereum looks vastly overvalued by comparison,” he said.

If investors follow traditional valuation strategies, Samani believes Solana’s ETF could see significantly higher demand than Ethereum’s, reinforcing its potential as a Wall Street favorite when an ETF eventually launches.

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