A strong competitor to Ethereum? VanEck applies for the first Solana ETF

Author: Matthew Sigel, VanEck Source: X, @matthew_sigel Translator: Shan Ouba, Golden Finance

Editor's Note: ETF is a common investment tool that is more easily accepted and used by many traditional investors. Now that VanEck has filed an application for the first Solana ETF, it may represent an important turning point in the cryptocurrency market, once again highlighting the industry's growing importance in the global financial landscape.

The following is the original content:

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 thoughts on why we think SOL is a commodity.

Why did we apply for the Solana ETF?

A competitor to Ethereum, Solana is an open source blockchain software designed to handle a variety of applications, including payments, transactions, games, and social interactions. The Solana blockchain operates as a single global state machine, without the need for sharding or second-layer 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 extremely low fees and using advanced security mechanisms that combine proof of history and proof of stake, we believe Solana stands out from the crowd of blockchain software, with powerful and accessible features. We believe that the combination of high throughput, low fees, strong security, and a strong community atmosphere make Solana an attractive ETF choice, showing investors a versatile and innovative open source ecosystem.

Why do we think 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 to pay for transaction fees and computing services on the blockchain. Just 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 (NFTs), highlights the utility and value of SOL as a digital commodity. No single intermediary or entity operates or controls the Solana network, a principle known as decentralization. The transaction verification and record-keeping infrastructure is maintained by a diverse group of users, including numerous independent validators around the world. These validators are responsible for processing transactions and protecting the network, ensuring that no single entity can monopolize the system.

SOL's decentralized nature, high utility, and economic viability are consistent with the characteristics of other established digital commodities, reinforcing our belief in SOL as a valuable commodity with multiple use cases for investors, builders, and entrepreneurs seeking an alternative to the app store duopoly.