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Solana has historically diversified portfolios more than ether, Morgan Stanley says
Morgan Stanley data cited by CoinDesk shows ether and solana have been about 35% and 44% more volatile than bitcoin since the start of 2026, while solana has had a slightly lower week-to-week correlation with bitcoin.
CoinDesk reports that in a new edition of its Crypto Long & Short newsletter, Morgan Stanley analyst Denny Galindo weighs whether professional investors should pair bitcoin exposure with ether or solana as the crypto market expands and more exchange-traded products become available.
The analysis notes that bitcoin spot exchange-traded products have drawn more than $55 billion in inflows since their January 2024 launch, setting the stage for later ether and SOL ETP listings, while investors continue to debate whether holding any non-bitcoin digital assets improves portfolio diversification.
CoinDesk says ether and SOL have been less liquid and more volatile than bitcoin, with volatility about 35% higher for ether and 44% higher for SOL since the start of 2026, which can raise overall portfolio volatility when added for diversification.
Morgan Stanley’s historical correlation work, as summarized by CoinDesk, shows bitcoin’s correlation with ether was 0.78 over roughly four years through April 2026, while bitcoin’s correlation with SOL was 0.72, with SOL also showing slightly lower correlation with the S&P 500 than both bitcoin and ether when SOL moved differently than bitcoin.
Latest closeBitcoin $65,444.56 ▲0.8%|Solana $78.08 ▲0.4%|S&P 500 7,543.59 ▲0.4%