Recently, the Solana (SOL) ecosystem has witnessed significant institutional movements — Nasdaq-listed Brera Holdings (stock code: BREA) announced its name change to Solmate, transforming into a financial strategy company focused on SOL, and plans to raise 300 million dollars to invest in the Solana ecosystem. This move not only caused Brera's stock price to surge by 225% after the announcement but also sparked discussions in the market about the ‘acceleration of institutional adoption of Solana.’ Coupled with continued investments from institutions like Pantera Capital, expectations for a Solana ETF, and plans for cryptocurrency infrastructure development in the Middle East, SOL is trying to narrow the gap in institutional holdings with Bitcoin (BTC) and Ethereum (ETH). However, the current 4% short-term correction of SOL (from 253 dollars to 245 dollars) also suggests that the market needs to rationally view its ‘institutionalization process’.
One, Brera's transformation to Solmate: A strategic layout betting $300 million on SOL
The transformation of Brera Holdings is not accidental, but aims at the growth potential of the Solana ecosystem and the policy dividends of the Middle East crypto market. Its $300 million strategic plan covers three core directions: "fundraising, infrastructure construction, asset holding", details are as follows:
Comprehensive transformation of identity and business: Brera Holdings has officially renamed itself Solmate, transitioning from its original sports club operations to crypto financial services centered around SOL - this transformation is interpreted by the market as a signal of "traditional listed companies fully embracing the Solana ecosystem". The company stated that it will "regard SOL as a core asset and build a financial strategy system around it", including long-term holdings of SOL, staking, and ecosystem investments;
$300 million fundraising: Solmate plans to raise $300 million through "equity financing + strategic cooperation", with the funds mainly used for three aspects: first, to build Solana validator nodes in the Middle East and improve local crypto infrastructure; second, to acquire SOL from the secondary market and OTC market to build a long-term holding portfolio; third, to invest in quality projects within the Solana ecosystem, such as DeFi protocols and NFT platforms, strengthening the binding with the ecosystem;
Differentiated positioning in the Middle East market: Solmate's CEO Marco Sanori (former Chief Legal Officer of Kraken) clearly stated that the company will "differentiate itself from other crypto financial companies" - the core focus is on the Middle East market. Currently, the Middle East (especially the UAE and Saudi Arabia) is actively promoting the legalization of cryptocurrencies, and places like Dubai and Abu Dhabi have introduced several policies to support the development of digital assets. Solmate plans to establish validator nodes locally, providing more stable Solana network services for Middle Eastern users, and leveraging local policy advantages to attract institutional funds from Middle Eastern sovereign wealth funds and family offices;
Cross-market stock trading: To enhance investor convenience, Solmate's stocks will be listed on both the US Nasdaq and the Dubai Financial Market in the UAE, meaning Middle Eastern investors can purchase Solmate stocks through local exchanges, indirectly participating in the SOL ecosystem, further expanding the company's shareholder base and funding sources.
It is worth noting that Solmate's transformation has received two key supports: one is the cooperation endorsement from the Solana Foundation, which will provide technical support for its validator node construction; the second is a strategic investment from a large UAE investment company, with an initial investment scale of $50 million, laying the foundation for the $300 million fundraising plan.
Two, current status of SOL institutional adoption: Significant gap compared to BTC and ETH, growth potential yet to be released
Although Solmate's $300 million bet is a strong booster for SOL's institutionalization, from the current overall institutional holding data, there is still a significant gap between SOL and BTC and ETH. This is both a "shortcoming" and conceals "growth potential":
Comparison of institutional holdings: Data shows that currently the total market value of BTC held by global institutions reaches $364 billion, the holding market value of ETH is about $30 billion, while the institutional holdings of SOL are only $925 million - this scale is not only far lower than BTC and ETH, but even less than 3.1% of ETH. In terms of allocation ratio, BTC accounts for about 16% of institutional investors' allocation in crypto assets, ETH accounts for about 7%, while SOL only accounts for 0.9%, which is considered a "low allocation asset";
Signals of continuous entry of institutional funds: Although current holdings are low, the recent institutional interest in SOL has significantly increased. In addition to Solmate's $300 million plan, Pantera Capital, as a leading VC in the crypto field, has been very active recently: on the one hand, it invested in the Solana ecosystem development platform Helius Labs, and on the other hand, provided $1.65 billion in funding support to Forward Industries, specifically for Solana-related businesses; in addition, multiple European asset management companies have also begun to include SOL in their "observational asset pool", assessing its long-term allocation value;
The core reasons behind the gap: The reasons for SOL's lagging institutional holdings mainly include two points: first, the "historical issue of network stability" - early Solana experienced multiple network interruptions, leading some risk-averse institutions to doubt its reliability; second, the "lack of compliance and products" - compared to BTC and ETH which have already had multiple countries approve their spot ETFs, SOL's ETF is still in the "expectation phase", lacking convenient compliance investment tools, limiting the entry channels for traditional institutions.
Three, ETF expectations and the "institutional moment": Can SOL replicate the rising logic of BTC and ETH?
The market generally believes that "ETF approval" is the key factor driving the surge in BTC and ETH institutional holdings - taking BTC as an example, after the approval of the US spot BTC ETF, institutional holdings grew by over 50% within six months, and the price also reached a historic high. The current expectations for the Solana ETF (expected to be approved in the fourth quarter of 2025 at the earliest) are seen as a core catalyst for SOL to open its "institutional moment", with the following logic and potential impacts:
The value of the ETF's "compliance entry channel": For traditional institutions (such as pension funds, mutual funds), ETFs are the most convenient and compliant tools for participating in crypto assets - there is no need to directly hold tokens, just purchase ETF shares through a securities account to indirectly enjoy the price volatility returns of SOL, while avoiding risks such as "token storage, private key management". If the Solana ETF is approved, it is expected to attract a large amount of institutional funds that "previously could not enter due to compliance restrictions", rapidly increasing the institutional holdings of SOL;
Pantera Capital's optimistic expectations: Pantera Capital recently stated in a report: "The approval of the Solana ETF will be the starting point for its 'institutional moment'. Referring to the experience of BTC and ETH ETFs, SOL's institutional allocation ratio could rise from the current 0.9% to 3%-5%, corresponding to a capital scale growing from $925 million to several billion dollars, sufficient to support a phase of price increase for SOL";
Comparison with the rising logic of BTC and ETH: Analysts point out that the core reason BTC and ETH can set new price highs is "institutional demand + narrative support" - the "digital gold" narrative for BTC and the "blockchain infrastructure" narrative for ETH have both received institutional recognition. The current narrative of SOL is shifting from "high-performance public chain" to "institution-friendly ecosystem": on the one hand, it strengthens the differentiated narrative of "Middle East market layout" through collaborations like Solmate, and on the other hand, it constructs a "compliant investment" narrative leveraging ETF expectations. If these two narratives can continue to be implemented, SOL is expected to replicate the institution-driven rising path of BTC and ETH.
However, there are also cautious views that SOL's "institutional moment" still faces uncertainties: first, the timing of ETF approval is variable; if regulatory policies tighten, it may delay the approval time; second, SOL needs to prove that "network stability has been thoroughly improved" to avoid network interruptions again, otherwise it may weaken institutional confidence; third, the overall sentiment of the current crypto market is still affected by the Federal Reserve's monetary policy and the global macroeconomic environment. If the market environment deteriorates, even if the ETF is approved, the entry of funds may not meet expectations.
Four, short-term market response: the "divergence signal" of stock price soaring and coin price correction
After the announcement of Solmate, an interesting phenomenon of "divergence in stock price and coin price" appeared in the market, reflecting the differences in expectations for SOL across different markets:
Brera (Solmate) stock price skyrocketed 225%: On the day the news was announced, Brera Holdings' stock (BREA) surged rapidly after the opening, with a single-day increase of 225%, rising from $1.2 per share to $3.9. This increase reflects investors' optimistic expectations of the "company's transformation to the Solana ecosystem" and also reflects the traditional stock market's enthusiasm for "crypto concepts" - many stock market investors view Solmate as a "stepping stone for indirect investment in SOL", sharing the growth dividends of the SOL ecosystem by buying stocks;
SOL price short-term correction of 4%: In contrast to the soaring stock price, SOL did not rise after the announcement, but rather corrected from $253 to $245, a drop of about 4%. Analysts believe that this correction is mainly caused by "short-term traders taking profits" - previously SOL had risen from $220 to $253 due to "institutional investment rumors", with a cumulative increase of over 15%. After the news landed, some funds chose to "take profits"; moreover, the current crypto market is generally in a "volatile adjustment" phase, with BTC and ETH also experiencing slight corrections, dragging SOL down.
This "divergence" alerts investors: the short-term rise in stock prices is more about "concept speculation", while the long-term trend of SOL's coin price still relies on substantial factors such as "actual entry of institutional funds and improvement of ecosystem fundamentals". Do not blindly chase the SOL token just because of a surge in stock price.
Five, the next step for SOL: Infrastructure and ecosystem in parallel, narrowing the gap requires time
From the current layout, if Solana wants to narrow the institutional gap with BTC and ETH, the next step needs to continue to work on "infrastructure improvement, ecosystem landing, and compliance breakthroughs" in three aspects:
Enhancing network stability and infrastructure: Solmate is building validator nodes in the Middle East, which not only serves to "layout regional markets" but also supplements the Solana network - more validator nodes will improve the decentralization and risk resistance of the network, rectifying the historical impression of "network interruptions" and eliminating technical concerns for institutional entry;
Promoting the landing of "institution-grade applications" within the ecosystem: Institutional funds are more inclined to invest in ecosystems that have "real application scenarios". Solana needs to attract more institutional-oriented projects, such as compliant RWA tokenization platforms and institutional-level DeFi financial tools, allowing institutional funds not only to "hold SOL" but also to "realize value appreciation within the Solana ecosystem";
Accelerating the process of ETF and other compliance products: The Solana Foundation needs to work closely with regulatory agencies and asset management companies to promote the approval process of the Solana ETF, while exploring other compliant investment tools (such as SOL trusts and structured products) to provide institutions with more entry options.
Overall, Solmate's $300 million bet and the expectations for the Solana ETF have opened up the "possibilities" for the institutionalization of SOL. However, to truly narrow the gap with BTC and ETH, it still needs to go through a long-term process of "policy validation, capital landing, and ecosystem maturation". In the short term, volatility will remain the norm.
If you want to continuously track the progress of Solmate's $300 million funding, the approval dynamics of the Solana ETF, and changes in institutional holdings, and receive timely SOL market interpretations and operational suggestions, follow the crypto veteran, who will provide you with deeper market analysis and ecosystem interpretations, helping you seize opportunities and avoid risks in the institutionalization process of SOL.
