Investment management firm VanEck has launched a new Exchange-Traded Note (ETN) tracking the Solana based Pyth token. According to a press release, this ETN is available on Euronext Amsterdam and Paris.
PYTH ETN enables investors in 15 European countries to invest in the underlying token. With this new offering, investors can benefit from the performance of the PYTH token without needing to buy or store it directly. Notably, this makes investing in the Solana ecosystem easier.
The VanEck PYTH ETN Offering in the EU
The PYTH Network is designed as an oracle, bringing real-world data to blockchain systems. Oracles like PYTH allow smart contracts to access real-time information, like stock prices and exchange rates.
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This data is necessary for various Decentralized Finance (DeFi) applications. PYTH focuses on providing high-quality data, making it a key player among blockchain oracles, especially on the Solana network.
Intriguingly, VanEck’s launch of the PYTH ETN is geared toward attracting institutional and retail investors interested in the Solana ecosystem. The PYTH ETN enables investors to bet on PYTH’s future growth through regulated financial products. It also allows investors to benefit from PYTH’s price changes and network activity without managing a digital wallet.
Undoubtedly, VanEck has made it easier for European investors to join the growing Solana ecosystem with a diverse offering. This move supports VanEck’s goal of providing various crypto investment choices and strengthening Solana’s role in the industry.
Potential Impact of PYTH ETN on SOL Price
Meanwhile, the launch of the PYTH ETN could boost SOL price by increasing awareness and demand for Solana-based solutions in Europe.
This new ETN could attract investment in the PYTH token and indirectly support the Solana network. The growing interest in PYTH might also lead to more usage of Solana’s blockchain. This will place an enormous demand on Solana as a gas fee, strengthening SOL’s market value.
Moreover, strong financial support and more liquidity often make a network seem more trustworthy and stable. This can make Solana more appealing than other blockchain projects, setting the stage for further growth.
SOL price has experienced intense volatility in the past 24 hours. As of this writing, the coin is changing hands for $161.2, having jumped by a marginal 1.3%.
VanEck’s Continued Commitment to Solana ETF
Despite pulling the 19b-4 filing from the CBOE website, VanEck still hopes to get its Solana ETF approved in the US. As regulatory pressure increases, the asset management firm remains convinced that Solana is a commodity, much like Bitcoin and Ethereum.
VanEck stated that the withdrawal does not mean the firm has stopped bringing the Solana ETF to the market. VanEck’s head of digital assets research, Matthew Sigel, said the S-1 filing is still effective and important to their approach.
According to VanEck, SOL’s commodity status strengthens the firm’s support for the ETF. This concept is based on developing legal analysis that holds that some crypto-assets classified as securities in primary markets became more similar to commodities in secondary markets.
Nevertheless, VanEck continues to engage with exchange partners and regulators to move the SOL ETF forward.
