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VanEck executive explains why firm filed for Spot Solana ETF

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In a groundbreaking development for the cryptocurrency market, global asset management firm VanEck has Spot Solana Exchange Traded Fund (ETFS)VanEck’s head of research, Matthew Siegel, laid out several compelling reasons for the firm’s decision to file for the Spot Solana ETF.

VanEck Explains Reasons for Spot Solana ETF Filing

In an X (formerly Twitter) post On June 27, Siegel explained why VanEck filed for the Spot Solana ETF. He began by explaining why he wanted to mark this major milestone: VanEck files for first Solana ETF In the United States (US).

Going forward, Siegel revealed: Solana (SOL) It was a major rival to Ethereum, the world’s largest altcoin. Cryptocurrency Features It was highlighted that with its diverse use cases, SOL is one of the few cryptocurrencies that stands out in the blockchain ecosystem due to its unique technical architecture.

VanEck’s head of research said SOL is an open-source blockchain that operates as a single global state machine, without the need for sharding or decentralization. Layer 2 SolutionsAs a result, blockchain’s unique design allows for high scalability and speed, making it possible to process thousands of transactions per second.

He said Solana’s blockchain network will effectively Large volume of transactions It employs Proof of History (PoH) and Proof of Stake (PoS) consensus at a very reasonable cost, a feature that was one of the big draws for VanEck’s decision to apply for a patent. Solana ETF.

Siegel also highlighted that the combination of “high throughput, low fees, robust security and a strong, vibrant community” makes SOL an attractive option for ETFs. he, Potential launch of SOL ETF Effectively present versatile and innovative open-source ecosystems to investors.

VanEck’s Solana ETF application is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC). Bloomberg analyst James Seifert said: Predicted The Solana ETF will likely be launched in 2025, with more Cryptocurrency ETFs Enter the market.

Why VanEck sees SOL as a Bitcoin-like product

Shigeru posted X’s Solana As the following products Bitcointhe world’s largest cryptocurrency. He clarified that SOL works similarly to digital goods such as Bitcoin and Ethereum, and highlighted various use cases, such as paying transaction fees on the blockchain and using it for computational services.

He also revealed that Solana can be easily traded on various digital asset exchanges, such as ETH on the Ethereum network, and can also be used for peer-to-peer (P2P) transactions. Shigeru highlighted the wide range of applications and services of blockchain, highlighting its expanding scope of operation. Decentralized Finance (DeFi)and non-fungible tokens (NFTs).

whole, The Decentralized Nature of Solanaand high utility, reveal VanEck’s belief that cryptocurrencies will become valuable commodities, positioning them as ideal candidates for an ETF.

SOL price: $144 | Source: SOLUSDT on Tradingview.com

Featured image created by Dall.E, chart taken from Tradingview.com

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