BlackRock’s senior exchange-traded fund executive, Samara Cohen, recently stated that Bitcoin and Ethereum will be the only two cryptocurrencies traded via ETFs in the near future. She explained that while Bitcoin and Ethereum meet the minimum expectations of the investment giant for ETFs, no other digital asset comes close. Cohen mentioned that there is little appetite for other currency ETFs, such as Solana, among investors. Despite the technical difficulties in bringing new ETFs to market, BlackRock is focusing on the investability of digital assets when considering adding them to ETFs.
Recently, there has been speculation about what might come next after the successful launch of Ethereum ETFs last week. The weekly trading volume of crypto funds reached its highest level since May, surpassing $14.8 billion. Solana has been suggested as a potential candidate for ETFs, with VanEck and 21Shares filing for Solana ETFs in the US. Many are optimistic about Solana as an asset because it is considered to be a faster and cheaper alternative to Ethereum. However, the lack of Solana CME futures, as seen with Bitcoin and Ethereum, is a major obstacle to the approval of a Solana ETF by the SEC.
Despite the hurdles, the potential for a Solana ETF seems promising, considering its market capitalization of $82 billion and its representation of around 3% of the overall value of the crypto market, according to CoinGecko data. The assumption that Solana could be the next cryptocurrency to be traded via ETFs was further solidified when Franklin Templeton described Solana as an “exciting and major development” that could drive the crypto space forward. As the crypto market continues to evolve, the interest in expanding ETF offerings beyond Bitcoin and Ethereum is likely to grow.
In conclusion, BlackRock’s decision to focus on Bitcoin and Ethereum as the only cryptocurrencies traded via ETFs in the near future reflects the current status of the crypto market. While there is interest in other digital assets, such as Solana, the lack of investor appetite and technical hurdles present challenges for their inclusion in ETFs. However, with the success of Ethereum ETFs and the potential for Solana to become a faster and cheaper alternative to Ethereum, there is optimism that more cryptocurrencies could be added to ETFs in the future. The evolving landscape of the crypto market and the growing interest in digital assets suggest that the introduction of new ETFs beyond Bitcoin and Ethereum is a possibility in the coming years.
