Traditional ETFs are issued in traditional financial markets and require regulatory approval, custodians, and involve complex processes. Now Solana says it can issue ETFs directly on-chain, which is essentially creating a DeFi version of an ETF, or a decentralized index fund. Technically, it’s not difficult; it’s just a contract that packages a basket of tokens. When users buy this contract, it’s equivalent to buying a basket of tokens. Such things have long existed in DeFi, like various index tokens. Solana packaging this as an ETF concept may be aimed at attracting traditional financial users. However, let's temper our enthusiasm; the biggest difference between on-chain ETFs and traditional ETFs is regulation. Traditional ETFs have custodians, audits, and disclosure requirements, and in case of problems, there are safety nets. On-chain ETFs, when issues arise, could be due to contract vulnerabilities or Rug Pulls, creating entirely different risks. Moreover, the actual demand for such products is also questionable. Those who truly want to diversify their investments can buy a basket of coins themselves without needing an additional layer of ETF packaging, unless this ETF can provide some extra value, such as automatic rebalancing or some unique strategy. From Solana's perspective, they are continuously trying out new application scenarios, and this spirit of exploration is commendable. However, whether this can truly take off and attract users still needs time to validate; it is too early to draw conclusions now.