The first Solana ETF application in the United States has been submitted, and SOL may be considered a digital commodity.

Recently, an American asset management company submitted a Solana trust application document to the Securities and Exchange Commission (SEC). This trust is essentially an exchange-traded fund (ETF) that plans to issue common stock and is expected to be listed on specific exchanges. Notably, this trust currently only supports cash forms of subscription and redemption, which is different from other Solana trust products launched previously.

The head of digital asset research at the company announced the news on social media, stating that this is the first Solana ETF application in the United States. He also shared some reasons why the company considers SOL as 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 costs provides a better user experience for many use cases.

Solana can achieve thousands of transactions per second at extremely low costs and employs an advanced security mechanism that combines historical proof and proof of stake. These features make Solana a powerful and accessible blockchain software. The combination of high throughput, low fees, strong security, and an active community atmosphere makes Solana an attractive choice for ETFs, providing investors with a versatile and innovative open-source ecosystem.

Why is SOL considered a commodity similar to Bitcoin and Ether? SOL, as the native token of Solana, functions similarly to other digital commodities. It is used to pay transaction fees and computing services on the blockchain. Similar to 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 (NFT), highlighting the utility and value of SOL as a digital commodity. The decentralized nature of the Solana network is also noteworthy, as there is no single intermediary or entity that operates or controls the network. The infrastructure for transaction validation and record-keeping is maintained by a diverse group of independent validators distributed globally, ensuring the decentralization of the system.

The decentralized characteristics, high practicality, and economic viability of SOL are consistent with those of other mature digital commodities. For investors, developers, and entrepreneurs looking for alternatives to app stores, SOL may be a valuable commodity choice.