Why did VanEck the Digital Asset Manager Apply for a Solana ETF
VanEck Digital Asset Director Matthew Sigel explained the reason for VanEck’s application for the first Solana ETF in the United States in a tweet. They believe that Solana’s efficiency is conducive to the development of various applications, and that the functionality of SOL is no different from that of BTC and ETH, and should be classified as a commodity.
Why did we apply for a Solana ETF?
We believe that SOL, like Bitcoin and Ethereum, is a commodity.
Without a futures market, Solana leaps to an ETF.
As a competitor to Ethereum, Solana is an open-source blockchain software designed to handle various applications, including payments, transactions, games, and social interactions. The Solana blockchain operates as a single global state machine without the need for sharding or L2. Its unique combination of scalability, speed, and low cost may provide a better user experience for a variety of applications.
Solana is capable of processing thousands of transactions per second, with very low fees, and adopts an advanced security mechanism that combines historical proof and proof of stake. We believe that Solana stands out with its accessibility. We believe that this combination of high throughput, low fees, strong security, and a vibrant community makes Solana an attractive ETF option, providing investors with the opportunity to access a multifunctional and innovative open-source ecosystem.
We believe that the native token of Solana, SOL, functions similarly to other digital commodities such as Bitcoin and Ethereum. It is used to pay transaction fees and compute services on the chain. Like Ethereum’s ETH, SOL can be traded on digital asset platforms or used for peer-to-peer transactions.
The wide range of applications and services supported by the Solana ecosystem, from DeFi to NFT, emphasizes the utility and value of SOL as a digital commodity. Solana’s network is not controlled by any single intermediary, physical operation, or entity. This principle is known as decentralization, where transaction verification and recordkeeping are maintained by numerous independent validators distributed globally. These validators are responsible for processing transactions and ensuring network security, without any single entity able to monopolize the system.
The decentralized nature, practicality, and economic feasibility of SOL align with the characteristics of other existing digital commodities, reinforcing our belief that SOL may be a valuable commodity, suitable for investors, builders, and entrepreneurs seeking alternatives to the dominance of tech giants in application stores.
Matthew Sigel also took to Twitter to explain the community’s pessimism. He believes that emphasizing Solana’s lack of presence on US futures markets such as CME is foolish, and points out that futures markets are not important for price formation, as monitoring and shared agreements between spot cryptocurrency exchanges can meet the needs of futures.
ETF
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