Solana (SOL) and Ripple’s XRP enthusiasts had high hopes for the possibility of a Solana ETF in the United States following the successful launch of spot Ethereum ETFs. However, BlackRock’s senior ETF executive has dashed those hopes by stating that only Bitcoin and Ethereum meet the criteria for exchange-traded funds (ETFs) in the eyes of the investment giant. In a recent Bloomberg interview, BlackRock’s investment chief Samara Cohen made it clear that the appetite for other cryptocurrency ETFs, including SOL and XRP, simply wasn’t there.
Cohen emphasized that technical hurdles, as well as the lack of investability and demand from clients, are the main reasons why BlackRock is not pursuing ETFs for cryptocurrencies other than Bitcoin and Ethereum. While some in the crypto market have been speculating that Solana would be the next cryptocurrency to march onto Wall Street, BlackRock’s stance seems to indicate otherwise. The lack of Solana CME futures, like those for Bitcoin and Ethereum, poses a significant barrier to regulatory approval for a Solana ETF by the Securities and Exchange Commission.
Despite the setbacks, Solana has made significant strides in the crypto market, surpassing Binance’s native BNB token to become the fourth-largest cryptocurrency by market cap. Traditional U.S. fund manager Franklin Templeton has also recognized Solana as an “exciting and major development” that could drive the crypto space forward. Additionally, the SEC’s recent move to drop its charges against “Third-Party Crypto Asset Securities”, including SOL, Polygon’s MATIC, and Cardano (ADA), could potentially pave the way for regulatory approval of a Solana ETF in the future.
The recent surge in trading volume for crypto funds, fueled by the launch of spot Ethereum ETFs, has reignited speculation about which cryptocurrency will be the next to enter the ETF market. Solana has been singled out as a strong contender for a potential ETF, with applications for US-listed SOL ETFs already submitted by VanEck and 21Shares. Many in the crypto community are optimistic about SOL’s prospects due to its reputation as a faster and cheaper alternative to Ethereum. However, BlackRock’s reluctance to pursue ETFs for cryptocurrencies other than Bitcoin and Ethereum suggests that a SOL ETF may still be a ways off.
While the potential for a Solana ETF remains uncertain, the growing popularity and market cap of Solana make it increasingly difficult for financial giants like BlackRock to ignore. As the crypto market continues to evolve and regulatory frameworks adapt to accommodate new technologies, the possibility of a SOL ETF gaining approval in the future cannot be ruled out. Ultimately, the fate of a Solana ETF will depend on a combination of regulatory developments, market demand, and the willingness of institutions like BlackRock to embrace emerging cryptocurrencies beyond Bitcoin and Ethereum.
