The US asset management company applies for a Solana Spot ETF, and SOL is regarded as a digital commodity.

Recently, an American asset management company submitted an application to the SEC regarding a Solana trust. This product, named Solana Trust, is actually an exchange traded fund (ETF) that plans to issue common stock with equity. These shares are expected to be listed for trading on an exchange, but the specific timing will depend on the issuance notice. It is worth noting that the trust currently only accepts cash forms of subscription and redemption.

The details of this application document indicate that the company has officially submitted an application for a Solana spot ETF to the SEC. The head of digital asset research at the company announced the news on social media and shared their views on why they believe SOL is a commodity.

Why apply for a Solana ETF? Solana, as a competitor to Ethereum, is an open-source blockchain software designed to handle a variety of applications, including payments, transactions, gaming, and social interactions. The Solana blockchain operates as a single global state machine, without the need for sharding or layer-two networks, and its unique combination of scalability, speed, and low cost can provide a better user experience for many use cases.

Solana is considered a powerful and accessible blockchain software that achieves thousands of transactions per second with minimal fees, utilizing advanced security mechanisms that combine historical proof and proof of stake. The combination of high throughput, low fees, strong security, and an active community atmosphere makes Solana an attractive choice for exchange-traded funds, providing investors with a versatile and innovative open-source ecosystem.

So, why is SOL considered a commodity similar to Bitcoin and Ether? The native token SOL functions similarly to other digital commodities, as it is used to pay transaction fees and computational services on the blockchain. Like Ether on the Ethereum network, SOL can be traded on digital asset platforms or used for peer-to-peer transactions.

The Solana ecosystem supports a wide range of applications and services, from decentralized finance (DeFi) to non-fungible tokens (NFTs), highlighting the utility and value of SOL as a digital commodity. The Solana network operates without any single intermediary or entity controlling it, a principle known as decentralization. The infrastructure for transaction validation and record keeping is maintained collectively by a diverse group of users, consisting of numerous independent validators distributed globally. These validators are responsible for processing transactions and securing the network, ensuring that no single entity can monopolize the system.

The decentralized nature, high practicality, and economic feasibility of SOL align with the characteristics of other mature digital goods. This further confirms a viewpoint: for investors, developers, and entrepreneurs seeking alternatives to traditional app stores, SOL may be a valuable commodity.