The latest Solana European ETP could usher in a wave of institutional adoption for the blockchain. Is Solana the “next Ethereum”? Covered: Solana European ETP Solana: The “Next Ethereum” Solana (SOL) was one of the top-performing smart contract platforms of 2021. Backed by some of the biggest names in the crypto space, the protocol has […] The post Is Solana Next In Line To See Institutional Adoption? appeared first on CryptosRus.

Is Solana Next In Line To See Institutional Adoption?

The latest Solana European ETP could usher in a wave of institutional adoption for the blockchain. Is Solana the “next Ethereum”?

Covered:

  • Solana European ETP
  • Solana: The “Next Ethereum”

Solana (SOL) was one of the top-performing smart contract platforms of 2021. Backed by some of the biggest names in the crypto space, the protocol has grown from its infancy and is catching the eyes of individuals and institutions alike. Despite its flaws, the latest exchange-traded product (ETP) coming for Solana solidifies itself as another institutional favorite.

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Solana European ETP

As announced by the European digital asset manager CoinShares and the popular crypto exchange FTX, the two parties have partnered up to bring the CoinShares FTX Physical Staked Solana ETP.

CoinShares is Europe’s largest digital asset investment firm with $3.8 billion in assets under management (AUM).

CoinShares CEO Jean-Marie Mognetti says that the goal of the ETP is to bring easier access for institutions to enter the crypto markets with the help of FTX.

“A shared goal of FTX and CoinShares is to offer institutions means of access to crypto markets and through this partnership, both companies will be able to leverage their industry-leading technology to bring innovative products to the market.”

Sam Bankman-Fried, CEO of FTX, wants institutional access to crypto markets to be as cost-effective as possible.

“The goal is to bring institutional-grade services and products to market in a cost-effective manner. We only want to launch products that are genuinely innovative and add value to our clients. CoinShares has a proven track record of providing European investors with innovative and regulated crypto-asset investment vehicles for close to a decade, making them the obvious choice to collaborate with for institutional offerings. We’re excited to work alongside CoinShares to give investors access to the Solana ecosystem and we look forward to collaborating further on additional offerings.”

Initially seeded with 1 million SOL tokens (~$92.3 million), the ETP will also provide a slim 3% staking reward in order to achieve that cost-effectiveness.

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Solana: The “Next Ethereum”

As Sam Bankman-Fried mentioned, the ETP will give institutional investors easier access to the Solana ecosystem. This should come as great news to Solana holders and ecosystem developers, as it opens the flood gates for European money to more seamlessly flow into its ecosystem.

And it seems that the Solana ecosystem could use the support, as projects on the platform have notoriously traded down and to the right rather than up and to the right. Here’s a view of how some of Solana’s popular ecosystem plays have performed since the summer bottom of May 2021 (or since inception), when Solana was trading between $20-$40.

Solana has been receiving exclusive support from big-time crypto players for some time now. Coinbase, one of the largest crypto exchanges, announced that it would be bringing native Solana support to the Coinbase platform, making it the second smart contract platform behind Ethereum to receive a similar stamp of approval.

It will be interesting to see how 2022 plays out for Solana and its ecosystem. Between native crypto exchange support and institutional adoption thanks to investment vehicles like the Solana European ETP, however, there’s a strong case to be made for Solana’s long-term future in the crypto space.

Ethereum has already achieved “escape velocity,” as some crypto natives don’t even consider it to be an “altcoin” any longer. Perhaps Solana is next-in-line to receive the same distinction from the rest of the crowd.

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