21Shares Launches First SOL ETP, Goldman Sachs Report Talks About the “Faster” Solana Blockchain
As Solana (SOL), a $7.7 billion market cap cryptocurrency is behaving better than most of the coins in the cryptocurrency market, down only 50% from its all-time high a month back and still up 1,456% YTD, 21Shares is launching a Solana ETP.
The Switzerland-based investment product provider has launched the world’s first Solana exchange-traded product (ETP) which will begin trading under the “ASOL” ticker early next week.
Each unit of the ETP is backed by 0.667 SOL at launch with a base fee of 2.5% per annum. Coinbase Custody is the main custodian for the SOL ETP.
21Shares, formerly known as Amun, said this week that the Solana ETP will list on Switzerland’s primary stock exchange, the Swiss SIX. It will also be available on the Stuttgart and Dusseldorf multilateral trading facilities (MTFs) in Germany.
“These new ETPs deliver what clients asked for,” said 21Shares CEO Hany Rashwan in a statement. “We expect to add two new crypto ETPs in the next months together with new listing and trading venues.”
Earlier this month, Solana Labs, the team behind the Solana network raised $314 million in a token sale led by Andreessen Horowitz, which launched its biggest ever crypto-focused fund of $2.2 billion this week and Polychain Capital.
The Solana ecosystem is also backed heavily by Sam Bankman-Fried, the CEO and founder of crypto derivatives exchange FTX and quant trading firm Almeda Research.
Elsewhere, a Goldman Sachs report name drops Solana several times.
Talking about blockchains and related software that has been built, Goldman Sachs mentions Solana and Algorand as faster platforms amidst the first of its kind Bitcoin and most actively used for decentralized applications Ethereum.
Launched in 2020 with “some further improvements,” Solana blockchain uses a proof-of-history feature “which many would consider a significant breakthrough in speed and capacity,” it said.
Completing the proof-of-stake (PoS) process, Solana’s proof-of-history makes it “much more efficient” for validators to confirm each block and allows them to run thousands of smart contracts in parallel.
The report notes that Solana can process 50,000 transactions per second with an interoperability feature that is “enhanced by its own unique bridge to Ethereum called “wormhole.”’ This function allows users to leverage Solana’s speed while having access to interoperability.
Not only, the average transaction cost is very low on Solana, it also allows developers to use popular programming languages such as C/C++ or Rust, which are among the world’s fastest, on the Solana blockchain.