Samani from Multicoin explains why a SOL ETF might outperform ETH's

Samani argued that Solana generates significantly more fees despite having a much smaller market cap compared to Ethereum.

Key Points:

• Kyle Samani of Multicoin Capital believes a Solana-based ETF could outperform Ethereum-based ETFs, thanks to Solana's higher fee generation and lower market cap.
• Samani is a significant investor in Solana (SOL) and would benefit from a successful launch of the ETF.

Solana currently lacks an exchange-traded fund, but one of its biggest supporters is optimistic that a Wall Street-friendly vehicle could launch in 2025 — and believes it has the potential to outperform Ethereum's similar products.

Kyle Samani of Multicoin Capital, a major investor in Solana (SOL) and several related protocols, has been publicly urging the Securities and Exchange Commission (SEC) to approve a SOL ETF. His positive outlook on the asset may not come as a surprise given his strong backing.

During his appearance at Blockworks' Digital Asset Summit in New York City on Tuesday, Samani shared his perspective on why Solana is better positioned to attract traditional investors than Ethereum. According to Samani, the key factor lies in the fees generated on-chain relative to the overall value of the asset.

Samani explained that one reason the ETH ETF didn’t receive a strong reception was that many investors looked at Ethereum and asked, "Show me the fees." According to him, they couldn't find enough evidence to justify the high prices.

While stock traders use the price-to-earnings (P/E) ratio to determine if a company is over or undervalued, crypto lacks such a straightforward metric. However, Samani pointed out that blockchains still generate revenue and have tokens, which can be combined in a similar way to assess value.

He argued that Solana's theoretical P/E ratio is much healthier for investors compared to Ethereum's. His calculations suggested that Solana is trading at 30 to 50 times its P/E, while Ethereum is closer to 1,000 times.

Samani believes Solana's P/E ratio aligns more closely with high-growth tech stocks, making it potentially more attractive to traditional investors who may see more upside in Solana than in Ethereum.