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VanEck applies for the first Solana ETF in the United States, Bloomberg analyst: Approval is not impossible

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VanEck applies for the first Solana ETF in the United States, Bloomberg analyst: Approval is not impossible

ETF issuer VanEck takes a big step in the digital asset space by applying for the first Solana exchange-traded fund (ETF) in the United States. VanEck's Director of Digital Assets Research, Matthew Sigel, 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?

The decision by VanEck 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 experience for many use cases. Solana is capable of processing thousands of transactions per second with minimal fees, coupled with its advanced security mechanisms that combine proof-of-history and proof-of-stake, making it a robust and accessible blockchain solution.

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

Solana as a Digital Commodity

VanEck views Solana's native token SOL as similar in functionality to other digital commodities like Bitcoin and Ethereum. SOL is used to pay for transactions 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), emphasizing the utility of SOL and enhancing its value as a digital commodity. Additionally, Solana's decentralized nature, with no single intermediary or entity controlling the network, adds to its appeal.

Decentralization and Security

The transaction validation and record-keeping on the Solana network are maintained by a diverse set of independent validators distributed globally. These validators are responsible for processing transactions and securing 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 asset for investors, developers, and entrepreneurs. It offers an alternative to traditional app store models, with high utility and economic viability.

Bloomberg Analyst Comment: Political Power Could Make It Happen

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

Bloomberg analyst Eric Balchunas stated that his gut reaction was, "Oh, this will never get approved because there are no Solana futures." However, if there is a change in the U.S. presidency, anything is possible. Imagine a scenario where crypto mom Hester Peirce or a similarly crypto-friendly SEC commissioner is overseeing the U.S. Securities and Exchange Commission (SEC).