BlackRock’s senior exchange-traded fund executive, Samara Cohen, recently stated in an interview with Bloomberg TV that Bitcoin and Ethereum are the only two cryptocurrencies that meet the minimum expectations of the investment giant for ETFs. Cohen mentioned that despite any technical difficulties, there is simply not enough appetite for other currency ETFs, including Solana. This means that it will be a while before any other cryptocurrencies are included in ETFs.
Following the successful launch of Ethereum ETFs, which led to a spike in crypto funds’ weekly trading volume above $14.8 billion, there has been speculation about what might come next. Solana has been considered a likely candidate, with VanEck and 21Shares both filing for Solana ETFs in the US. Many are optimistic about Solana as an asset because it is seen as a faster and more cost-effective alternative to Ethereum.
Although Solana has been gaining attention and represents around 3% of the total value of the crypto market with a market capitalization of $82 billion, it faces challenges in gaining approval for an ETF from the SEC. One key obstacle is the lack of Solana CME futures, which are available for Bitcoin and Ethereum. The absence of futures contracts can impact the SEC’s decision on approving a Solana ETF. Despite these challenges, some fund managers like Franklin Templeton see Solana as an exciting development that could drive the crypto space forward.
In light of these developments, it is clear that Bitcoin and Ethereum will continue to dominate the ETF market in the near future. Both cryptocurrencies have met the criteria set by BlackRock for ETF investability and have also received positive feedback from clients. While there may be potential for other cryptocurrencies like Solana to be included in ETFs in the future, it will require overcoming various obstacles, including regulatory approval and market demand.
Investors and traders in the crypto market will be closely watching for any updates on the potential inclusion of Solana or other cryptocurrencies in ETFs. As the crypto space continues to evolve, new opportunities may arise for diversification and investment. However, for now, Bitcoin and Ethereum remain the top choices for ETF investments, offering stability and liquidity in a rapidly changing market. Stay tuned for further developments as the crypto ETF landscape continues to evolve in the coming months.
