VanEck Digital Assets Executive: Why Did We Apply for a Solana ETF?

VanEck's Digital Assets Manager Matthew Sigel took to Twitter to explain VanEck's rationale after applying for the first Solana ETF in the United States. They believe Solana's efficiency is more conducive to developing a variety of applications, and that SOL's functionality is no different from BTC and ETH, and should similarly be classified as a commodity.

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

Matthew Sigel Full Text

Why Did We Apply 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. Solana blockchain operates as a single global state machine without the need for sharding or L2, and its unique combination of scalability, speed, and low costs may provide a better user experience for various applications.

Solana can process tens of thousands of transactions per second with minimal fees and employs advanced security mechanisms combining historical proof and proof of stake. We believe Solana stands out with its strong accessibility. We think the combination of high throughput, low fees, robust security, and a vibrant community makes Solana an attractive ETF choice, offering investors the opportunity to engage with a versatile and innovative open-source ecosystem.

We Consider SOL as Commodity Alongside Bitcoin and Ethereum

We believe Solana's native token SOL functions similarly to other digital commodities like Bitcoin and Ethereum. It is used for paying transaction fees on the chain and for computational services. 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 NFTs, highlights the practicality and value of SOL as a digital commodity, with no single intermediary, entity operation, or control over the Solana network. This principle, known as decentralization, ensures that transaction verification and record-keeping are maintained by numerous independent validators globally distributed. These validators are responsible for processing transactions and ensuring network security, preventing any single entity from monopolizing the system.

The decentralized nature, high utility, and economic viability 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 tech giants dominating app stores.

Without Futures Market, Solana Leaps to ETF

VanEck's decisive application for a Solana ETF has sparked discussions in the sluggish market, but Matthew Sigel has been busy explaining the community's skepticism on Twitter.

He believes that constantly emphasizing Solana's absence from U.S. futures markets like CME is foolish and points out that futures markets are not crucial for price formation, as surveillance sharing agreements between spot crypto exchanges can meet the needs of futures trading.

What are the differences between Bitcoin Spot ETF and Futures ETF? Does BlackRock's surveillance sharing agreement have the opportunity to take the lead in the Spot ETF?