--- title: "SOL Stands For \"Super Obvious Long\"" description: Solana may repeat Ethereum’s explosive growth as ETFs and treasury demand surge, despite stretched Layer-1 valuations. image: https://www.ar.ca/hubfs/Copy%20of%20TO2S%20375x175%20%282845%20%C3%97%201600%20px%29%20-%202025-09-10T081037.032.png --- [![email-sig-logowhite](https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&height=96&name=email-sig-logowhite.png "email-sig-logowhite")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** [![Arca](https://www.ar.ca/hs-fs/hubfs/arca_square_576x576.png?width=60&height=30&name=arca_square_576x576.png "Arca")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** Search **Menu** ** ** [![Data Room](https://no-cache.hubspot.com/cta/default/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ![](https://www.ar.ca/hubfs/Blog/Thats%20Our%202%20Satoshis/Branding/2-Sats-Header.png) [Market Recap](https://www.ar.ca/blog/tag/market-recap) | # SOL Stands For "Super Obvious Long" [![Jeff Dorman, CFA](https://www.ar.ca/hubfs/Jeff%20Dorman.png)](https://www.ar.ca/blog/author/jeff-dorman-cfa) Written by [Jeff Dorman, CFA](https://www.ar.ca/blog/author/jeff-dorman-cfa) Sep 2, 2025 ******![Thats Our 2 Satoshis Logo](https://www.ar.ca/hs-fs/hubfs/Thats%20Our%202%20Satoshis%20Logo.png?width=300&name=Thats%20Our%202%20Satoshis%20Logo.png)****** ![Screenshot 2025-09-02 at 8.08.08 AM](https://www.ar.ca/hs-fs/hubfs/Screenshot%202025-09-02%20at%208.08.08%20AM.png?width=720&height=461&name=Screenshot%202025-09-02%20at%208.08.08%20AM.png) *Source: TradingView, CNBC, Bloomberg, Messari*   **Solana is Likely to Follow in ETH’s Footsteps** It’s no secret that I believe Layer-1 protocols are the least interesting part of the digital assets investing universe. The [valuations make no sense](https://www.ar.ca/blog/layer-1-protocols-overhyped-or-misunderstood), the premise of the [fat protocol thesis is nonsense](https://x.com/jdorman81/status/1895215453817155618), and we can hardly call any protocol a “success” if 99% of the world’s assets (stocks, bonds, and real estate) are yet to be moved on-chain.    That said, traders are still going to trade, and it’s hard to argue with that trade right now. And SOL might be the most obvious long right now. Now, anytime anything becomes a consensus, it’s typically wrong. Just writing that anything is “obvious” makes me second-guess that opinion.  But SOL does seem poised to follow in ETH’s footsteps.   You may recall that ETH was left for dead as an investment 6 months ago.  It had underperformed BTC and SOL for most of the past 2 years, and the narrative was that ETH can’t scale, and ETH L2s were parasitic to ETH’s value capture.  The chart of ETH vs BTC was basically straight down from the 2021 highs, up until March 2025.   ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-58-1779-PM.png?width=1600&height=805&name=undefined-Sep-02-2025-03-03-58-1779-PM.png) *Source:  TradingView ETH/BTC Ratio through March 2025*   But when you extend that chart over the past 6 months, it shows quite a remarkable turnaround.   ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-58-5680-PM.png?width=1600&height=852&name=undefined-Sep-02-2025-03-03-58-5680-PM.png)   *Source:  TravingView ETH/BTC Ratio since March 2025*   And we know exactly what turned this around. First, Circle (CRCL) IPO’d, and the narrative that Ethereum is the “stablecoin chain” emerged.  And for good reason.  Stablecoin AUM on Ethereum represents over half of all stablecoins on-chain.   ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-57-8635-PM.png?width=1192&height=820&name=undefined-Sep-02-2025-03-03-57-8635-PM.png) *Source:  *[*TheBlock*](https://www.theblock.co/data/stablecoins/usd-pegged)   Second, on the heels of this narrative, the ETH ETFs began hoovering assets.  After nearly no growth for the first year of ETH ETFs existence, Ethereum ETFs have attracted an estimated $11.68 billion in net inflows in the past five months.     ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-59-6892-PM.png?width=1600&height=538&name=undefined-Sep-02-2025-03-03-59-6892-PM.png)   Lastly, the recent Digital Asset Treasury (DAT) craze has led to another source of demand for ETH, with over $10 billion in ETH accumulated by these vehicles in the past three months alone.  DATs now own over 3% of the outstanding supply of ETH.    ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-04-00-0288-PM.png?width=1178&height=816&name=undefined-Sep-02-2025-03-04-00-0288-PM.png)   ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-57-5103-PM.png?width=1176&height=802&name=undefined-Sep-02-2025-03-03-57-5103-PM.png) *Source:  TheBlock*   With this backdrop, it’s not surprising that ETH has risen over +190% since the April 8th lows (versus +42% for BTC and +85% for SOL over this same time period).   So why does this make SOL the most obvious long right now?  Well, aside from just a relative value catch-up, SOL appears poised to repeat the exact same playbook that ETH just executed in the coming months.   The first Solana ETF in the United States, the REX-Osprey SOL and Staking ETF, went live on July 2, 2025, on the Cboe BZX Exchange. This ETF, managed by REX Shares and Osprey Funds, tracks the price of Solana and offers staking rewards with a variable monthly dividend, currently at a rate of 7.3%.   Several other asset managers, including VanEck, 21Shares, Bitwise, Grayscale, Franklin Templeton, Fidelity, CoinShares, and Invesco, [have filed applications for spot Solana ETFs](https://coinpedia.org/news/full-list-of-solana-etfs-awaiting-sec-approval-dates-filings-and-whats-next/) with the SEC. While these applications are under review, the SEC has until October 10, 2025, to approve or deny them. However, some sources suggest approvals could come earlier due to regulatory pressure and the precedent set by the REX-Osprey ETF. Polymarket and Bloomberg analysts estimate a high likelihood of approval in 2025, with odds closing in on 100%. If approved, additional spot Solana ETFs could launch by late 2025.   ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-58-9857-PM.png?width=1600&height=970&name=undefined-Sep-02-2025-03-03-58-9857-PM.png) *Source:  Polymarket*   Further, the DAT train for SOL is picking up where ETH left off.  While SBET and BMNR seem to be in a 2-horse race as the leading ETH DAT, there are currently 3 DATs in the market for SOL, all of which are trying to raise PIPEs in September, with proceeds to be used to buy SOL immediately.  According to various news sources, and summarized by ChatGPT: - Sharps Technology (STSS) – A former medical device firm, now pivoting toward crypto. Raised $400M (potentially $1B with warrants) to build a Solana treasury. Offers from the Solana Foundation include $50M in discounted SOL.  Leadership includes Solana Web3 veterans Alice Zhang and strategic advisor James Zhang.     - Pantera Capital – Looking to raise up to $1.25B via a two-part structure: $500M equity and $750M in warrants. Aims to convert a Nasdaq-listed entity into “Solana Co.” to hold SOL.     - Galaxy / Multicoin / Jump Crypto – Working jointly to raise $1B, with Cantor Fitzgerald as financial advisor, backed by Solana Foundation endorsement. Targeting an early September close.     ![](https://www.ar.ca/hs-fs/hubfs/undefined-Sep-02-2025-03-03-59-3885-PM.png?width=1600&height=564&name=undefined-Sep-02-2025-03-03-59-3885-PM.png)   ⸻   In total, there is potentially $2.65 billion flowing into Solana treasuries over the next month, if these deals get funded and closed.    Valuations aside, the market cap of SOL is currently less than 20% of ETH.  If the price of ETH rose almost 200% on roughly $20 billion of new demand, what do you think happens to SOL on $2.5 billion or more of new demand?   ***And That’s Our Two Satoshis! ****Thanks for reading everyone! Questions or comments, just let us know.*   **The Arca Portfolio Management Team** *Jeff Dorman, CFA - Chief Investment Officer* *Katie Talati - Director of Research* *Sasha Fleyshman - Portfolio Manager* *David Nage - Portfolio Manager* *Wes Hansen - Director of Trading and Operations* *Michal Benedykcinski - Senior Vice President, Research* *Alex Woodard - Associate, Research* *Christopher Macpherson - Research Analyst* *Andrew Masotti - Associate, Trading and Operations* *Joey Reinberg, Associate, Trading and Operations*     **To learn more or talk to us about investing in digital assets and cryptocurrency** **call us now at [(424) 289-8068](tel:+14242898068).** ### Subscribe For the Latest Blockchain News & Analysis     Disclaimer: The views expressed here are those of the author, and not a reflection of any Arca official statement. This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional. Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services. Previous Story [← What Rate Cuts Could Mean for Crypto & Stocks](https://www.ar.ca/blog/what-rate-cuts-could-mean-for-crypto-stocks) [** ](https://www.ar.ca/blog) Next Story [Why "Red September" Narratives Miss the Bigger Picture →](https://www.ar.ca/blog/why-red-september-narratives-miss-the-bigger-picture) ## You May Also Like These Stories on Market Recap [![](https://www.ar.ca/hubfs/Two%20sats%20July%206%202026.png) ](https://www.ar.ca/blog/crypto-green-shoots-are-sprouting) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Crypto Green Shoots Are Sprouting](https://www.ar.ca/blog/crypto-green-shoots-are-sprouting) Jul 6, 2026 | 1 min read [![](https://www.ar.ca/hubfs/Two%20sats%20June%2029%202026%20%281%29.png) ](https://www.ar.ca/blog/securitize-the-most-important-rwa-stock-no-one-has-heard-about-yet) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Securitize - The Most Important RWA Stock No One Has Heard About Yet](https://www.ar.ca/blog/securitize-the-most-important-rwa-stock-no-one-has-heard-about-yet) Jun 29, 2026 | 1 min read [![](https://www.ar.ca/hubfs/_Two%20sats%20June%2022%202026.png) ](https://www.ar.ca/blog/galaxy-digital-glxy-how-a-distressed-mining-site-buyout-became-both-a-pot-of-gold-and-an-identity-crisis) [Market Recap](https://www.ar.ca/blog/tag/market-recap) ### [Galaxy Digital (GLXY): How a Distressed Mining Site Buyout Became Both a Pot of Gold and an Identity Crisis](https://www.ar.ca/blog/galaxy-digital-glxy-how-a-distressed-mining-site-buyout-became-both-a-pot-of-gold-and-an-identity-crisis) Jun 22, 2026 | 1 min read ### Arca Los Angeles I New York (424) 400-7444 info@ar.ca [![LinkedIn](https://www.ar.ca/hubfs/LinkedIn.png "LinkedIn")](https://www.linkedin.com/company/arcafinance/mycompany/) [![Twitter](https://www.ar.ca/hubfs/Twitter.png "Twitter")](https://twitter.com/arca) [![Youtube](https://www.ar.ca/hubfs/Youtube.png "Youtube")](https://www.youtube.com/c/Arcafinance) ### Contact Us Copyright © 2025 Arca Holdings. All Rights Reserved.  |  [Important Disclosures](https://www.ar.ca/important-disclosures) ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "contentUrl" : "https://youtu.be/hHdcrzD7_0w", "description" : "Meet the founders of Arca and learn about what inspired them to join the digital asset ecosystem. Rayne Steinberg – Co-Founder & Chief Executive Officer Jeff Dorman – Co-Founder & Chief Investment Officer Phil Liu – Co-Founder & Chief Legal Officer.", "duration" : "PT4M13S", "embedUrl" : "https://www.youtube.com/embed/hHdcrzD7_0w", "name" : "Meet the Founders of Arca", "thumbnailUrl" : "https://i.ytimg.com/vi/hHdcrzD7_0w/default.jpg", "uploadDate" : "2022-02-15T15:49:56Z" } ``` ```json { "@context" : "https://schema.org", "@type" : "SiteNavigationElement", "Name" : [ "HOME", "Hedge-Funds", "Bitcoin-Fund", "Blog", "About", "Team", "Careers", "Data Room", "Get in Touch" ], "Url" : [ "https://www.ar.ca/", "https://www.ar.ca/arca-hedge-funds", "https://www.ar.ca/ai-bitcoin-fund", "https://www.ar.ca/blog", "https://www.ar.ca/about", "https://www.ar.ca/arca-team", "https://www.ar.ca/careers", "https://arcafunds.hvstprivate.com/", "https://www.ar.ca/contact?hsCtaTracking=28ac2c2f-186c-436f-9682-1169cf946ad3%7C63e370f0-aacd-4463-8bce-3616a7b4b7f3" ] } ``` ```json { "@context" : "https://schema.org/", "@type" : "WebSite", "name" : "Ar", "potentialAction" : { "@type" : "SearchAction", "query-input" : "required name=search_term_string", "target" : "https://www.ar.ca/search?q={search_term_string}" }, "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org/", "@type" : "WebPage", "name" : "Ar", "speakable" : { "@type" : "SpeakableSpecification", "xpath" : [ "/html/head/title", "/html/head/meta[@name='description']/@content" ] }, "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org", "@type" : "Organization", "alternateName" : "Ar", "logo" : "https://www.ar.ca/Logo.png", "name" : "Ar", "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "https://schema.org", "@id" : "", "@type" : "LocalBusiness", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "New York", "addressRegion" : "CA", "postalCode" : "90066", "streetAddress" : "Los Angeles" }, "geo" : { "@type" : "GeoCoordinates", "latitude" : 33.9697897, "longitude" : -118.2468148 }, "image" : "https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&name=email-sig-logowhite.png", "name" : "Arca", "openingHoursSpecification" : { "@type" : "OpeningHoursSpecification", "closes" : "23:59", "dayOfWeek" : [ "Monday", "Tuesday", "Wednesday", "Thursday", "Friday", "Saturday", "Sunday" ], "opens" : "00:00" }, "priceRange" : "$", "sameAs" : [ "https://twitter.com/arca", "https://www.linkedin.com/company/arcafinance" ], "telephone" : "(424) 400 7444", "url" : "https://www.ar.ca/" } ``` ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "description" : "Rebecca Rettig, General Counsel of Aave Marc Boiron, General Counsel of dYdX Colleen Sullivan, Co-founder and CEO of CMT Digital Marvin Ammori, CLO at Uniswap Phil Liu, Co-founder and CLO of Arca", "duration" : "PT50M59S", "embedUrl" : "https://www.youtube.com/embed/hTc-kWa9hM8", "interactionCount" : "121", "name" : "Regulation: Clarity on the Horizon", "thumbnailUrl" : "https://i.ytimg.com/vi/hTc-kWa9hM8/default.jpg", "uploadDate" : "2021-05-26T13:29:46Z" } ``` ```json { "@context" : "http://schema.org", "@type" : "VideoObject", "description" : "Andrew Peel, Head of Digital Asset Markets at Morgan Stanley Jennifer Murphy, COO of Western Asset Management Tom Jessop, President of Fidelity Digital Assets Tim Davis, Principal of Deloitte Subhanker Sinha, Head of Blockchain, Digital at BNY Mellon", "duration" : "PT47M54S", "embedUrl" : "https://www.youtube.com/embed/Wx1LEII47iM", "interactionCount" : "242", "name" : "The Current Institutional Adoption Wave", "thumbnailUrl" : "https://i.ytimg.com/vi/Wx1LEII47iM/default.jpg", "uploadDate" : "2021-05-26T15:15:41Z" } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Organization", "name" : "Ar" }, "dateModified" : "2021-07-12", "datePublished" : "2021-06-28", "description" : "Blockchain commentary and analysis written for sophisticated investors - by professional investors", "headline" : "We Should Appreciate Bitcoin More, but it’s Not Defensive", "image" : "https://f.hubspotusercontent00.net/hub/4536350/hubfs/Thats%20Our%20Two%20Sathoshis%20%2812%29-2.png?width=380&name=Thats%20Our%20Two%20Sathoshis%20%2812%29-2.png", "mainEntityOfPage" : { "@id" : "https://www.ar.ca/blog", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&name=email-sig-logowhite.png" }, "name" : "Market Recap" } } ```