VanEck just filed for FIRST Solana exchange-traded fund (ETF) in the U.S.
Here are some thoughts on why we believe $SOL is a commodity.
Why should we apply?
An Ethereum competitor, Solana is open-source blockchain software designed to handle a variety of applications, including payments, transactions, gaming, and social interactions. The Solana blockchain operates as a single global state machine with no sharding or Layer 2, and its unique combination of scalability, speed, and low cost enables a better user experience for many use cases.
By enabling thousands of transactions per second with minimal fees and employing advanced security mechanisms that combine proof-of-history and proof-of-stake, we believe Solana is a powerful and accessible blockchain software. We believe the combination of high throughput, low fees, strong security and a strong community atmosphere make Solana an attractive option for exchange-traded funds, providing investors with a versatile and innovative open source ecosystem .
Why do we believe SOL is a commodity like Bitcoin, Ethereum, etc.?
We believe the native token SOL functions similarly to other digital commodities such as#bitcoinand #ETH. It is used to pay for transaction fees and computing services on the blockchain. Like Ethereum 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), highlight 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 user base, including numerous independent validators distributed around the world. These validators are responsible for processing transactions and securing the network, ensuring that no one entity can monopolize the system.
SOL’s decentralized nature, high utility, and economic viability are consistent with characteristics of other mature digital commodities, which reinforces our belief that SOL may be a valuable commodity for app stores seeking to replace the duopoly Provide use cases for product investors, builders and entrepreneurs.