VanEck’s first ETF on the Deutsche Börse Frankfurt Stock Exchange will be backed by a rapidly increasing digital asset.
VanEck is considering offering a Solana ETF in Germany, Blockworks has discovered, following the growth of the layer-1 protocol in recent months. The ETF and mutual fund managers are eyeing a new entry point into the crypto industry. VanEck now offers a Bitcoin Tracker Fund, which provides direct exposure to the cryptocurrency for accredited US investors and eligible offshore investors.
VanEck and Sam Bankman-Fried, an early investor in Solana via Alameda Research, did not respond to a request for comment from Blockworks. In June, a lesser-known issuer, 21Shares, introduced a Solana Platform Traded Product (ETP) on Switzerland’s SIX exchange.
VanEck has submitted an application with the Securities and Exchange Commission to launch an ETF in the United States that would invest directly in bitcoin, as well as a bitcoin strategy fund that would invest in bitcoin futures contracts. It also announced plans last month to bring a futures-based ether ETF to market, but swiftly withdrew the application to the SEC.
According to Matthew Sigel, VanEck’s head of digital assets research, the growth of alternative layer-1 smart contract platforms has resulted from increased demand for transaction pricing and throughput that are lower and faster than those offered by the Ethereum network.
There are perhaps half a dozen layer-1 smart contract protocols with the track record, size, and community participation to someday rival Ethereum, he remarked at the time, highlighting Solana in particular.
“The ability to process 50,000 transactions per second, which rivals Nasdaq, opens up the possibility of securitizing any number of existing assets, tokenizing them, and trading them in parallel on the Solana network,” Sigel explained.
Tushar Jain, the managing partner at Multicoin Capital, stated at a panel discussion at the recent Blockworks Digital Asset Summit in New York City that Solana was one of his firm’s “major investments” in the Defi area.
Solana is presently trading at $158, down 2% over the weekend and 11% for the week, according to CoinGecko, as the system struggles to rebuild market confidence following the suspension of on-chain activities earlier this week due to technical concerns.
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