I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
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 handle various applications, including payments, trading, gaming, and social interactions. Operating as a single global state machine without sharding or layer 2s, the Solana blockchain’s unique combination of scalability, speed, and low costs may offer a better user experience for many use cases.
By enabling thousands of transactions per second with minimal fees and employing an advanced security mechanism that combines proof-of-history and proof-of-stake, we believe Solana stands out as a powerful and accessible blockchain software. We think this combination of high throughput, low fees, robust security, and a strong community vibe makes Solana an attractive option for an exchange-traded fund, offering investors exposure to a versatile and innovative open-source ecosystem.
Why do we believe SOL is a commodity like bitcoin, ether, etc.?
We believe the native token, SOL, functions similarly to other digital commodities such as #bitcoin and #ETH. It is utilized to pay for transaction fees and computational services on the blockchain. Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.
The broad range of applications and services supported by the Solana ecosystem, from decentralized finance (DeFi) to non-fungible tokens (NFTs), underscores SOL's utility and value as a digital commodity. No single intermediary or entity operates or controls the Solana network, a principle referred to as decentralization. The transaction validation and recordkeeping infrastructure are collectively maintained by a diverse user base comprising numerous independent validators distributed globally. These validators are responsible for processing transactions and securing the network, ensuring no single entity can monopolize the system.
SOL’s decentralized nature, high utility, and economic feasibility align with the characteristics of other established digital commodities, reinforcing our belief that SOL may be a valuable commodity with use cases for investors, builders, and entrepreneurs looking for alternatives to the duopoly app stores.
