VanEck, the global investment manager and ETF issuer has reportedly filed for a Solana ($SOL) ETF in Germany. This signifies the growing institutional interest in the relatively new cryptocurrency Solana, which has had a phenomenal past two months reaching new ATH and entering price discovery mode. The altcoin rose by nearly 7X from August rising from just under $35 to record a new ATH above $210.
VanEck is a giant in the ETF space and its growing interest in the crypto market is only going to drive crypto adoption further. The ETF manager was among the first to file for a Bitcoin ETF before the US Securities and Exchange Commission (SEC) back in 2017 and currently has two Bitcoin ETF proposals pending before the SEC. The First filing if approved would offer direct investment in Bitcoin while the Bitcoin Strategy ETF filing promises to offer Bitcoin Futures investment opportunities.
VanEck said the decision to select Solana was based on its scalability solution which is among the highest in the Layer-1 protocols available in the market. Matthew Sigel, VanEck’s head of digital assets research said,
“The idea that you could get 50,000 transactions per second, which would rival Nasdaq, opens up the potential to just securitize any number of existing assets, tokenize them and trade them in parallel using the Solana network,”
Can Solana Put Behind the Network Snag to Continue its Bull Run?
VanEck’s proposal could spur new interest in the seventh-largest cryptocurrency by market cap whose reputation took quite a hit after a bug led to the shutting down of the network for nearly 24-hours. Solana blockchain experienced an outage last week due to a number of unidentified transactions making it to several pools leading to the crashing of several nodes. While many Ethereum proponents took the opportunity to point out the flaws in so-called “Ethereum Killers,” Solana founder called it a part of the development process.
1/ Solana Mainnet Beta encountered a large increase in transaction load which peaked at 400,000 TPS. These transactions flooded the transaction processing queue, and lack of prioritization of network-critical messaging caused the network to start forking.
— Solana Status (@SolanaStatus) September 14, 2021
$SOL is currently experiencing a downtrend along with the rest of the market, and even though it looked set on the path to recovery after the restart of the network, the current bearish downtrend could see its price retrace to $100 levels. $SOl was trading at $135.79.
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