In a groundbreaking development for the cryptocurrency market, global asset management firm VanEck has filed Spot Solana Exchange Traded Fund (ETFS). Matthew Sigel, head of research at VanEck, outlined several compelling reasons that led the company to decide to file for the Spot Solana ETF.
VanEck Explains Reasons Behind Solana ETF Spot
WX (formerly Twitter) post On June 27, Sigel shed delicate on VanEck’s reasons for filing the Spot Solana ETF. He first commemorated the essential milestone by emphasizing that VanEck Files First-Ever Solana ETF in the United States (USA).
Moving on, Sigel revealed that Solana (UN) was the main competitor of Ethereum, the world’s largest altcoin. He delved into cryptocurrency functionalities and diverse exploit cases, which shows 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 stated that SOL is an open-source blockchain that operates as a single global state machine without the need for partitioning or Layer 2 Solutions. As a result, the unique design of the blockchain allowed it to achieve high scalability and speed, processing thousands of transactions per second.
He revealed that Solana’s blockchain network effectively supports high transaction volume at a very moderate cost while leveraging Proof of History (PoH) and Proof of Stake (PoS) consensus. This possibility was one of the main factors behind VanEck’s decision to file ETF Solana.
Sigel also emphasized that SOL’s combination of “high throughput, low fees, solid security, and a strong, vibrant community” makes it an attractive choice for an ETF. He emphasized that potential launch of SOL ETF fund will effectively provide investors with a comprehensive, groundbreaking open source ecosystem.
Currently, VanEck’s application for the Solana ETF is still pending approval from the U.S. Securities and Exchange Commission (SEC). Bloomberg analyst James Seyffart said predicted that the Solana ETF will most likely be launched in 2025, potentially paving the way for more cryptocurrency ETFs enter to market.
Why VanEck believes SOL is a commodity like Bitcoin
In his post, X Sigel also described Solanum as a commodity, e.g Bitcointhe largest cryptocurrency in the world. He revealed that SOL works similarly to digital goods such as Bitcoin and Ethereum, highlighting various exploit cases, including the exploit of transaction fees and blockchain computing services for payments.
He also revealed that Solana can also be easily traded on various digital asset exchanges, such as ETH on the Ethereum network, or used for peer-to-peer (P2P) transactions. Sigel highlighted the broad scope of blockchain applications and services, emphasizing its expanded operational scope towards Decentralized Finance (DeFi)and non-fungible tokens (NFTs).
Generally, The decentralized nature of Solanaand high usability confirm VanEck’s belief that the cryptocurrency will become a valuable commodity, making it an ideal candidate for an ETF.
Featured image created with Dall.E, chart from Tradingview.com
