BlackRock, one of the world’s largest asset management firms, has confirmed that it currently has no plans to launch a Solana (SOL) ETF despite the success of its Bitcoin and Ethereum spot ETFs. In an interview with Bloomberg, BlackRock’s CIO Samara Cohen stated that a Solana ETF launch is not in the near term due to factors such as investability and client demand. Cohen mentioned that Bitcoin and Ethereum meet the criteria to be delivered in an ETF, but it will be a while before we see anything else.
Both Bitcoin and Ethereum’s spot ETFs have been successful, with BlackRock’s iShares Bitcoin Trust amassing nearly $20 billion in flows since January 11. The Ethereum ETF also controls $440 million in ETH after its first week. However, BlackRock’s Head of Digital Assets, Robert Mitchnick, noted that the next plausible investible asset after Bitcoin and Ethereum is still at a very low percentage of the crypto market cap and lacks the track record of maturity and liquidity needed for an ETF launch.
Despite BlackRock’s stance, VanEck became the first firm to file for a Solana spot ETF in the United States in late June. The company argued that regulators should approve their ETF for public trading as SOL functions similarly to BTC and ETH as digital commodities. However, Solana does not yet have a futures market on the CME, which could impact its classification as a security token. The SEC has also alleged that SOL may be a security token in its Coinbase lawsuit, further complicating the potential approval of a Solana ETF.
The competition for launching a Solana ETF is open, with BlackRock’s dismissal of small-cap altcoins leaving room for other asset managers to enter the market. Despite the success of Bitcoin and Ethereum ETFs, the case for a Solana ETF remains questionable due to factors such as market maturity, liquidity, and regulatory concerns. While BlackRock remains focused on Bitcoin and Ethereum as the top priorities for its crypto-focused clients, other firms like VanEck are exploring opportunities to introduce a Solana ETF in the US.
In conclusion, BlackRock has no immediate plans to launch a Solana ETF, leaving the door open for other asset managers to potentially introduce the product. The success of Bitcoin and Ethereum spot ETFs has not translated to a clear path for a Solana ETF, with factors such as market maturity, liquidity, and regulatory challenges still a concern. Despite this, firms like VanEck are actively pursuing the launch of a Solana ETF in the US, arguing that SOL functions similarly to BTC and ETH as digital commodities. As the market continues to evolve, the possibility of a Solana ETF remains uncertain, with regulatory clarity being crucial for its approval.
