Crypto News– The CEO of VanEck, a global investment firm known for its Bitcoin Trust (HODL) among nearly a dozen spot bitcoin ETFs, believes that the cryptocurrency industry should shift its focus towards transaction fees rather than Bitcoin (BTC) and Ethereum (ETH) or their associated exchange-traded funds.
VanEck CEO: Transaction Fees Overshadow Bitcoin and Ethereum ETFs
Jan van Eck expressed on CoinDesk‘s Markets Daily that the transaction fees on the Bitcoin and Ethereum blockchains are unpredictable, posing challenges for building applications within those ecosystems. In an interview with CoinDesk TV’s Jen Sanasie, van Eck emphasized, The most significant story of 2023, which people are aware of but perhaps not focusing on enough, is simply that transaction costs are now available at affordable rates through Solana or the so-called layer 2s.
Solana (SOL), often referred to as an Ethereum killer, is a layer 1 protocol with cheaper costs and faster transaction speeds than Ethereum. Layer 2s are separate blockchains that are built on top of layer 1 chains, such as Ethereum, to reduce bottlenecks with scaling and data that layer 1s face. Ethereum rollups and the Lightning network on Bitcoin are examples of layer 2s.
The most interesting thing happening in crypto to me right now is that you have databases that can scale, that can take a lot of users of high uptime and now have predictable costs. And so real stuff can be built on these databases now, We’re going to see that in the next couple of years.
Van Eck
He also mentioned that it’s unlikely for ether ETFs to be approved by their May deadline. Unlike the bitcoin ETF approval process, the U.S. Securities and Exchange Commission has not been responsive to filings by the prospective issuers.
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