Morgan Stanley strategist: SOL historically a better diversifier than ETH

Solana (SOL) has historically been a superior diversification asset compared to Ethereum (ETH), according to Morgan Stanley investment strategist Denny Galindo. In an interview with CoinDesk, Galindo noted that with the launch of spot ETFs, many investors are considering which digital assets to hold alongside Bitcoin, and he believes SOL has historically provided better diversification effects than ETH. Galindo explained that through April 2026, the correlation coefficient between Bitcoin and ETH was 0.78, while the correlation between Bitcoin and SOL was lower at 0.72. This indicates that SOL was slightly less likely to move in the same direction as Bitcoin. He added that when SOL moves in a different direction from Bitcoin, its correlation with traditional assets like stocks also tends to be lower than that of ETH. Based on these historical correlations, Galindo concluded that SOL can be a better diversification asset than ETH.