BlackRock has officially stated that they do not have any immediate plans to launch a Solana (SOL) ETF, despite the success of their Bitcoin and Ethereum spot ETFs that were introduced this year. This decision opens up opportunities for other asset managers to step in and compete in this space, with some already in the process of filing to launch similar products.
In an interview with Bloomberg on Tuesday, BlackRock CIO Samara Cohen explained that the launch of a BlackRock Solana ETF is not on the horizon. Cohen emphasized the importance of investability and meeting certain criteria in order to be included in an ETF. According to her, Bitcoin and Ethereum currently meet these standards, but other cryptocurrencies may take longer to meet the requirements.
Although BlackRock’s Bitcoin and Ethereum spot ETFs have been highly successful, the case for a Solana ETF remains uncertain. Robert Mitchnick, BlackRock’s Head of Digital Assets, mentioned at Bitcoin 2024 that Solana is not yet at the level of maturity, liquidity, and market cap compared to Bitcoin and Ethereum. Mitchnick reiterated that Bitcoin is still the top priority for most crypto-focused clients, followed by Ethereum.
VanEck recently filed for a Solana spot ETF in the United States, making them the first firm to do so. They argued that regulators should approve their request for public trading, as SOL functions similarly to BTC and ETH as digital commodities, which have already been approved. However, unlike Bitcoin and Ethereum, Solana does not currently have a futures market on the CME, which could impact the approval process for a Solana ETF.
The Securities and Exchange Commission (SEC) has raised concerns about SOL potentially being classified as a security token, as seen in their lawsuit against Coinbase. This regulatory uncertainty adds another layer of complexity to the possibility of a Solana ETF being launched in the near future.
Overall, the outlook for a Solana ETF is still uncertain, as BlackRock has no immediate plans to introduce one and regulatory hurdles remain. Investors will have to wait and see how the situation unfolds in the rapidly evolving cryptocurrency market.