According to reports, VanEck, a global investment manager and ETF issuer, has filed for a Solana ($SOL) ETF in Germany. This reflects growing institutional interest in Solana, a relatively new cryptocurrency that has had a stellar two months, reaching new highs and entering price discovery mode. Since August, the altcoin has risen nearly 7X, from just under $35 to a new high above $210.
VanEck is a behemoth in the ETF world, and its growing interest in the crypto market will only accelerate adoption. In 2017, the ETF manager was one of the first to file for a Bitcoin ETF with the US Securities and Exchange Commission (SEC), and the SEC currently has two Bitcoin ETF proposals pending. If approved, the first filing would allow for direct Bitcoin investment, while the Bitcoin Strategy ETF filing would allow for Bitcoin Futures investment.
Solana was chosen, according to VanEck, because of its scalability solution, which is among the best among Layer-1 protocols on the market. VanEck’s head of digital assets research, Matthew Sigel, stated,
“The possibility of getting 50,000 transactions per second, which would rival Nasdaq, opens up the possibility of simply securitizing any number of existing assets, tokenizing them, and trading them in parallel using the Solana network,” says the author.
Can Solana overcome the Network Snag and continue its winning streak?
VanEck’s proposal could rekindle interest in the seventh-largest cryptocurrency by market capitalization, whose reputation took a hit after the network was shut down for nearly 24 hours due to a bug. Last week, the Solana blockchain experienced an outage as a result of a number of unidentified transactions making their way into several pools, causing several nodes to crash. While many Ethereum supporters used the opportunity to point out flaws in so-called “Ethereum Killers,” Solana founder said it was all part of the 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, like the rest of the market, is currently in a downtrend, and while it appeared to be on the mend after the network was restarted, the current bearish downtrend could see its price retrace to $100 levels. The price of $SOl was $135.79.