I am pleased to announce that VanEck has just applied for the first Solana Exchange Traded Fund (ETF) in the United States.
Here are some of our thoughts on why we believe SOL is a commodity.
Why are we applying for a Solana ETF?
As a competitor to Ethereum, Solana is an open-source blockchain software designed to handle various applications, including payments, transactions, gaming, and social interactions. The Solana blockchain operates as a single global state machine, without the need for sharding or layer-two solutions. Its unique combination of scalability, speed, and low cost may provide a better user experience for many use cases.
By supporting thousands of transactions per second with minimal fees and employing advanced security mechanisms combining historical proof and proof of stake, we believe Solana stands out among many blockchain softwares, with strong and accessible features. We believe that the combination of high throughput, low fees, strong security, and a vibrant community makes Solana an attractive ETF choice, showcasing a versatile and innovative open-source ecosystem to investors.
Why do we believe SOL is a commodity?
We believe that the native token SOL functions similarly to other digital commodities, such as Bitcoin and Ethereum. It is used for paying transaction fees and computational services on the blockchain. Like Ether on the Ethereum network, 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 decentralized finance (DeFi) to non-fungible tokens (NFT), highlights the practicality and value of SOL as a digital commodity. There is no single intermediary or entity operating or controlling the Solana network, a principle known as decentralization. The infrastructure for transaction validation and record-keeping is maintained by a diverse group of users, including numerous independent validators worldwide. These validators are responsible for processing transactions and securing the network, ensuring that no single entity can monopolize the system.
The decentralized nature, high utility, and economic viability of SOL align with the characteristics of other established digital commodities, reinforcing our belief in SOL as a valuable commodity and providing multiple use cases for investors, builders, and entrepreneurs seeking alternatives to dual-headed monopolies in the application store.
