Jan van Eck, CEO of global investment firm VanEck, sheds light on the importance of transaction fees in the cryptocurrency ecosystem, surpassing interest in Bitcoin and Ethereum ETFs.
Jan van Eck focuses on transaction fees
The most important story of 2023, which people are aware of but I don’t think they are focusing enough on, is simply that transaction costs are now available at affordable rates through Solana or what is called layer 2.
Jan van Eck
In a world where Bitcoin ETFs capture considerable attention, Jan van Eck raises an often underestimated but fundamental issue: transaction fees on the Bitcoin and Ethereum blockchains.
According to him, these unpredictable fees are a major deterrent to the development of applications on these ecosystems. In an interview with Jen Sanasie of CoinDesk TV, van Eck emphasized that alternatives offering affordable transaction costs, such as Solana or layer 2 solutions, deserve more attention.
Van Eck praises Solana and Layer 2
Van Eck expresses a preference for protocols like Solana, often seen as an Ethereum rival, due to its lower costs and transactional speed. He also highlights layer 2 technologies built on layer 1 networks like Ethereum as effective solutions to reduce scalability issues and costs. These innovations now enable the development of useful and accessible applications, marking a potential turning point in the use of blockchain technologies.
Unlikely ETFs for Ethereum in May
Despite the growing interest in Bitcoin and Ethereum ETFs, Jan van Eck deems the approval of ETFs for Ethereum unlikely by their May deadline. Unlike the approval process for Bitcoin ETFs, the SEC has not shown notable responsiveness to potential issuers’ filings.
This lack of communication from the SEC suggests that the necessary disclosure documents for approval are not ready, highlighting a notable difference in the treatment of Ethereum ETFs compared to Bitcoin ETFs.
