VanEck CEO Says Transaction Fee Is Bigger Story Than Bitcoin or Ethereum ETFs

Jan van Eck pointed out on CoinDesk TV, as interviewed by Jen Sanasie, that transaction fees on Bitcoin and Ethereum networks are unstable, creating challenges for app developers. However, he emphasized that the significant development of 2023 is the availability of reasonably priced transaction costs through Solana or other layer 2 solutions.

“The high transaction fees for Bitcoin and Ethereum make them unattractive options for building projects, don’t they? I like to explain this to non-crypto people using the analogy of filling up your car with gas. If you had to pay $50 every week, that would be manageable. But if one week you had to pay $600 instead, that would be a huge burden. And that’s essentially what high gas fees mean on Ethereum.”

currently, developers have access to innovative methods that offer affordable and consistent transaction fees. These advancements enable the creation of more practical applications, according to Jan Van Eck. He anticipates that such applications, driven by scalable databases capable of handling large user bases with minimal downtime and dependable costs, will gain significant prominence in the coming years.

The SEC is yet to respond to filings from potential issuers regarding the approval of ether ETFs by May. Contrary to the Bitcoin ETF approval process, their responses have been lacking. It’s unlikely that ether ETFs will be approved by the deadline.

“Jan Van Eck commented, ‘We’ve submitted our S1 filing but have yet to receive any updates. This could be an indication that the process won’t move forward without first organizing the required disclosure documents.’ “