VanEck plans to offer Solana ETF in Germany with an SOL loss of over 16% for the week
VanEck would like to offer a Solana ETF in Germany as the Layer 1 protocol has developed incredibly over the past few months.
The mutual fund manager wants to enter the crypto space from a different angle. VanEck currently offers a Bitcoin Tracker Fund, which enables accredited US investors and qualified foreign investors to invest directly in cryptocurrencies.
In June, 21Shares, a lesser-known issuer, launched the Solana Exchange Traded Product (ETP) on the SIX Swiss Exchange.
VanEck has previously applied for an ETF that invests directly in Bitcoin in the US and also applied for a strategic fund that invests in BTC futures contracts. The company filed an Ethereum-exposed ETF application with the SEC last month, but withdrew the proposal shortly afterwards.
Matthew Sigel, Head of Digital Asset Research at VanEck, said that given the higher demand for low transaction fees and speed, competition between Layer 1 smart contract platforms has increased faster than what the Ethereum network offers.
There are roughly six Layer 1 smart contract protocols with a track record, size, and community engagement that could potentially rival Ethereum, Sigel said, with a particular focus on Solana.
“The idea is that you can get 50,000 transactions per second on par with the Nasdaq, unlocking the potential to simply securitize, tokenize and trade any number of existing assets in parallel over the Solana network.”
Solana can currently process 65,000 transactions per second, compared to Ethereum’s modest 15 transactions per second.
Tushar Jain, a managing partner at Multicoin Capital, said at the recent Digital Asset Summit in New York City that Solana is one of the “big bets” in the company’s DeFi space.
Solana is currently trading at $ 144.7, down more than 10% in the last 24 hours and a 16.7% loss from the previous week as the market struggles to regain confidence after the initial failure.
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According to Blockworks