In a groundbreaking development for the cryptocurrency market, global asset management firm VanEck has filed an application Solana Spot Exchange Traded Fund (ETF)Matthew Sigel, director of research at VanEck, has highlighted several compelling reasons that motivated the company's decision to apply for a Spot Solana ETF.
VanEck Provides Reasons to Introduce a Solana Spot ETF
In an x (formerly twitter) x.com/matthew_sigel/status/1806313241431138434?s=46″ rel=”nofollow” target=”_blank”>mail On June 27, Sigel shed light on VanEck's reasons for introducing a Solana Spot ETF. He first commemorated the major milestone, emphasizing that VanEck has introduced the first Solana ETF in the United States (US).
In the future, Sigel revealed that bitcoin-etf-issuer-franklin-templeton-bullish-on-solana-sol-foresees-it-as-3rd-largest-crypto/” rel=”nofollow noopener” target=”_blank”>Solana (SOL) was a major competitor to ethereum, the world's largest altcoin. He delved into the cryptocurrency features and various use cases, highlighting that SOL was one of the few cryptocurrencies that stood out in the blockchain ecosystem due to its unique technological architecture.
VanEck's head of research claimed that SOL was an open-source blockchain that operated as a single global state machine without the need for sharding or layer 2 solutionsAs a result, the blockchain's unique design allowed it to achieve high scalability and speed, processing thousands of transactions per second.
He revealed that the Solana blockchain network effectively handles a High transaction volume at a very moderate cost and employing a Proof of History (PoH) and Proof of Stake (PoS) consensus. This ability has been one of the main attractive factors in VanEck's decision to apply Solana ETF.
Sigel also emphasized that the combination of “high yield, low fees, solid security and a strong and vibrant community” makes SOL an attractive option for an ETF. He highlighted that the possible launch of a SOL ETF will effectively expose investors to a versatile, innovative, open-source ecosystem.
Currently, VanEck's application for the Solana ETF is still pending approval from the United States Securities and Exchange Commission (SEC). Bloomberg analyst James Seyffart has x.com/jseyff/status/1806322096924217412?s=46″ rel=”nofollow” target=”_blank”>foretold that a Solana ETF will most likely launch in 2025, which could pave the way for more Cryptocurrency ETFs to enter the market.
Why VanEck believes SOL is a commodity like bitcoin
In his publication x, Sigel also described Solarium as a commodity as bitcointhe world’s largest cryptocurrency. He revealed that SOL works similarly to digital products such as bitcoin and ethereum, highlighting several use cases including its use for transaction fee payments and computational services on the blockchain.
He also revealed that Solana can also be easily traded on various digital asset exchanges like eth on the ethereum network or used for peer-to-peer (P2P) transactions. Sigel emphasized the blockchain's wide range of applications and services, underlining its extended operational range towards Decentralized Finance (DeFi)and non-fungible tokens (nfts).
In general, The decentralized nature of Solanaand its high utility, illuminates VanEck's belief that cryptocurrency will be a valuable commodity, positioning it as an ideal candidate for an ETF.
Featured image created with Dall.E, chart from Tradingview.com