VanEck Files for First Solana ETF in the US Bloomberg Analysts Approval is Possible

ETF issuer VanEck has taken a major step in the digital asset space by applying for the first-ever Solana exchange-traded fund (ETF) in the United States. Matthew Sigel, VanEck’s Director of Digital Asset Research, shared why the company believes Solana (SOL) qualifies as a commodity and the motivation behind this groundbreaking application.

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Why did VanEck apply for a Solana ETF?
Solana as a Digital Commodity
Decentralization and Security
Bloomberg Analyst Comment: Political Forces Could Make it Happen

VanEck’s decision to apply for a Solana ETF is based on Solana’s unique features as a blockchain platform. Solana is an open-source blockchain designed to handle various applications, including payments, transactions, gaming, and social interactions. Unlike other blockchains, Solana operates as a global single-state machine without the need for sharding or second-layer solutions.

This approach provides a powerful combination of scalability, speed, and low cost, potentially offering superior user experiences for many use cases. Solana is capable of processing thousands of transactions per second with very low fees. Additionally, its advanced security mechanism combining proof-of-history and proof-of-stake makes it a robust and accessible blockchain solution.

VanEck believes that the combination of high throughput, low fees, strong security, and an active community makes Solana an attractive option for an ETF. This will provide investors with an opportunity to access a diverse and innovative open-source ecosystem.

VanEck sees Solana’s native token, SOL, as similar in functionality to other digital commodities such as Bitcoin and Ethereum. SOL is used for paying transaction fees and computational services on the Solana blockchain, similar to how Ether is used on the Ethereum network. SOL can be traded on digital asset platforms or used for peer-to-peer transactions, highlighting its utility and value.

The Solana ecosystem supports a wide range of applications and services, from decentralized finance (DeFi) to non-fungible tokens (NFTs). This diversity emphasizes the practicality of SOL and enhances its value as a digital commodity. Furthermore, Solana’s decentralized nature, with no single intermediary or entity controlling the network, adds to its appeal.

Transaction verification and record-keeping on the Solana network are maintained by diverse independent validators scattered globally. These validators are responsible for processing transactions and safeguarding the network, ensuring that no single entity can monopolize the system.

This decentralized infrastructure aligns SOL with other established digital commodities, reinforcing VanEck’s belief that SOL is a valuable commodity for investors, developers, and entrepreneurs. It offers an alternative to traditional app store models with high utility and economic feasibility.

VanEck’s application for the first Solana ETF in the United States marks an important step in the digital asset space. The combination of Solana’s scalability, speed, low cost, strong security, and decentralization makes it a strong candidate for an ETF.

Bloomberg analyst Eric Balchunas stated that his immediate reaction was, “Oh, this will never get approved because there are no Solana futures.” But anything is possible if there is a change in the US presidency. Just imagine, someone like crypto mom Hester Peirce (crypto-friendly SEC commissioner) or someone similar overseeing the US Securities and Exchange Commission (SEC).

Solana
VanEck

Further Reading
VanEck Digital Asset Chief: Why We Applied for a Solana ETF?
VanEck Wage Fee War, Ethereum Spot ETF Expected to Launch on July 2nd.