SOL
by BSCN
June 27, 2024
The VanEck Solana Trust aims to offer investors exposure to Solana's blockchain, known for its high throughput and low transaction costs.
VanEck has filed the first U.S. exchange-traded fund (ETF) focused on Solana. The new fund, named the VanEck Solana Trust, aims to offer investors exposure to Solana (SOL), a blockchain known for its high throughput and low transaction costs.
This move comes after the Securities and Exchange Commission (SEC) showed a favorable stance towards spot Bitcoin and Ethereum ETFs. Worth noting,just six days ago, 3iQ filed for a similar product in Canada.
Matthew Sigel, head of digital assets research at VanEck, highlighted Solana's decentralized nature, utility, and economic feasibility as key reasons for this new ETF.
I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024
Some thoughts on why we believe SOL is a commodity are below.
Why did we file for it?
A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2
Solana's blockchain is recognized for its proof-of-history and proof-of-stake mechanisms, making it an attractive option for both institutional and retail investors. The network's combination of scalability, speed, and low costs positions it as a strong competitor to Ethereum.
Sigel emphasized that SOL, like Bitcoin and Ether, functions as a digital commodity. It is used to pay for transaction fees and computational services on the blockchain, and can be traded on digital asset platforms or used in peer-to-peer transactions.
The filing for the Solana ETF has already had a positive impact on the market. The SOL token saw a nearly 8% gain within a few hours of the announcement, according to CoinMarketCap.
The approval of Bitcoin ETFs in January marked a significant milestone for the crypto industry. Analysts believe that the introduction of Ethereum ETFs could attract $5 billion in net inflows within the first five months.
Although discussions about a Solana ETF were initially expected to start in 2025, VanEck's proactive approach indicates that the market may be ready for this new investment vehicle sooner than anticipated. Other cryptocurrencies, such as Ripple's XRP, are also being considered for future ETFs.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
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