Global investment manager and ETF issuer VanEck has reportedly applied for a Solana (SOL) ETF in Germany. This reflects increased institutional interest in the relatively new cryptocurrency Solana, which has reached an extraordinary new ATH in the past two months and has entered price discovery mode. The altcoin has surged nearly 7x from August, which rallied just below $35 to record a new ATH above $210.
VanEck can push Bitcoin and altcoin market further
According to experts, VanEck’s growing interest in the ETF space and crypto market could further drive crypto adoption. The ETF administrator was among the first to apply for a Bitcoin ETF before the US Securities and Exchange Commission (SEC) in 2017, and there are currently two Bitcoin ETF proposals pending before the SEC. The initial application, if approved, offers direct investment in Bitcoin, while the Bitcoin Strategy ETF application promises to offer Bitcoin Futures investment opportunities.
Why does VanEck prefer altcoin Solana?
VanEck said that the decision to choose Solana was based on the highest scalability solution among the Tier-1 protocols available in the market. Matthew Sigel, head of cryptocurrency research at VanEck, explained the following for the choice:
The idea that you can get 50,000 transactions per second to rival the Nasdaq opens up the potential to securitize any number of existing assets, tokenize them and trade them in parallel using the Solana network.
Can Solana continue her bull run after the net hurdle?
VanEck’s proposal could spur new interest in the new largest cryptocurrency by market cap, whose reputation has been heavily impacted after a bug caused the network to shut down for around 24 hours. Solana Blockchain suffered an outage last week due to a series of unidentified transactions that caused several nodes to crash. While many Ethereum advocates take the opportunity to draw attention to the flaws called “Ethereum Killers”, the Solana founder has described it as part of the development process.
Solana Mainnet Beta faced a huge increase in processing load reaching 400,000 TPS. These transactions filled the transaction processing queue and not prioritizing network-critical messaging caused the network to begin forking.
Solana technical analysis
According to Prashant Jha, whose analysis we shared as , SOL is currently in a downtrend along with the rest of the market and although it seems to be on the way to recovery after the network restart, the current downtrend may see its price pull back to the $100 levels. SOL was trading at $142.74 at the time of writing.