Kyle Samani: Solana ETF Could Outshine Ethereum’s Due to Stronger Financial Metrics
Multicoin Capital’s Kyle Samani believes Solana’s revenue-to-valuation ratio makes it a better bet for institutional investors.
Although Solana (SOL) doesn’t yet have an approved exchange-traded fund (ETF), Multicoin Capital co-founder Kyle Samani is confident that one will emerge—and when it does, he predicts it could outperform Ethereum’s ETF.
Speaking at Blockworks’ Digital Asset Summit in New York, Samani argued that Solana generates far more network fees relative to its market capitalization than Ethereum, making it a more attractive investment vehicle for traditional finance.
“Ethereum’s ETF launch underwhelmed in part because investors struggled to justify ETH’s valuation based on real revenue generation,” he noted.
Samani compared blockchain valuations to traditional stock market metrics like the price-to-earnings (P/E) ratio. While blockchains don’t have direct earnings, network fees can serve as a comparable measure.
According to his analysis, Solana is currently trading at a revenue multiple of around 30-50x, while Ethereum’s multiple is closer to 1,000x—making SOL appear significantly more reasonably valued.
“Solana’s valuation aligns more closely with high-growth technology stocks, whereas Ethereum’s is far more stretched,” Samani explained.
If institutional investors apply the same valuation logic they use for traditional equities, Samani believes a Solana ETF could attract stronger demand than Ethereum’s, positioning it as a major contender when regulatory approval eventually arrives.
