VanEck makes surprise Solana ETF filing

June 27, 2024
Darren Parkin

VANECK has made a filing request to list a Solana exchange-traded fund.

The fund manager, which has ploughed a huge amount of resources into Bitcoin and Ethereum ETFs, made the unexpected filing earlier today.

It is believed to be the first request for approval of an ETF connected to the spot price of Solana.

Matthew Sigel, VanEck's Head of Digital Asset Research, said he was excited to see the company make the first Solana exchange-traded fundin the US, before offering some thoughts on the move.

"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," he explained.

Matthew Sigel

"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."

Sigel went on to state VanEck believes Solana's SOL token is a commodity, no different to Bitcoin or Ethereum's Ether.

"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," he said.

"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 decentralised 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 decentralisation. 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."