Morgan Stanley’s Solana ETF sparks SOL vs. ETH debate – What’s going on?

2026 has kicked off with altcoins lastly getting their momentum.

The Altcoin Season Index has jumped to the extent that acted as resistance in mid-November. Nevertheless, with some alts up 20%+ versus Bitcoin [BTC], it’s clear that these strikes are pushed by market flows, not simply BTC’s rally.

In essence, most altcoins are carving their very own path. On this context, Morgan Stanley’s Solana [SOL] information couldn’t have come at a greater time, giving additional gasoline to capital flows into SOL because it hangs round a key ceiling.

Supply: TradingView (SOL/USDT)

For context, Solana has kicked off the New 12 months with stable momentum. 

Based on the latest filing, Morgan Stanley, one of many world’s largest banks with $6.4 trillion in property below administration (AUM), has filed an S-1 registration for the “Morgan Stanley Solana ETF Belief” with the SEC.

At a macro degree, this transfer narrows the hole between TradFi and DeFi.

On a micro degree, nonetheless, analysts noted Morgan Stanley’s lack of curiosity in an Ethereum [ETH] ETF, elevating a key query: Is that this transfer setting the stage for what’s subsequent between the 2 main L1s as 2026 progresses?

Solana vs. Ethereum: Competing for Wall Road consideration

Altcoin divergence this early in 2026 doesn’t look random.

ETF flows make that fairly clear. On the sixth of January, Bitcoin (BTC) ETFs noticed about $240 million in internet outflows, whereas Ethereum and Solana ETFs printed inflows of $115 million and $9.2 million, respectively.

At first look, capital clearly favors Ethereum. Nevertheless, that is the place Morgan Stanley’s SEC submitting begins to matter. On the DeFi side, Solana’s TVL is up roughly 9% this week, in comparison with about 6% for Ethereum.

Supply: TradingView (SOL/ETH)

Put merely, Solana’s on-chain performance is trying stronger.

The outcome? Technically, the SOL/ETH ratio is up 3%, bouncing off the identical ground that triggered a 28% rally again in 2024. With institutional assist for SOL rising, a repeat of that transfer doesn’t appear too far-fetched.

What’s extra, even after the SOL/ETH ratio fell 27% in 2025, Morgan Stanley’s continued give attention to Solana additional reinforces its on-chain energy, with early indicators clearly pointing to a rising edge over ETH.

Last Ideas

• Solana’s on-chain efficiency is strengthening, with TVL up 9% this week and the SOL/ETH ratio bouncing off key assist.
• Morgan Stanley’s Solana ETF submitting highlights rising institutional curiosity, reinforcing SOL’s rising edge over Ethereum.