Morgan Stanley Strategist Prefers Solana Over Ethereum as Bitcoin Diversifier, Citing 0.72 vs 0.78 Correlation

According to Morgan Stanley investment strategist Denny Galindo, speaking to Coindesk, Solana (SOL) is a superior diversification asset compared to Ethereum (ETH) when paired with Bitcoin in investment portfolios. Galindo cited historical correlation data showing Bitcoin-to-SOL correlation at 0.72 versus Bitcoin-to-ETH correlation at 0.78 through April 2026, indicating SOL moves more independently of Bitcoin. Additionally, SOL's correlation with the S&P 500 is slightly lower than both Bitcoin and Ethereum, further supporting its diversification value.

The analyst cautioned that Solana exhibits higher price volatility than Ethereum, which investors should weigh when evaluating its portfolio benefits.