BlackRock, a prominent asset management company, has revealed that they currently have no intention of launching a Solana (SOL) ETF in the near future. This decision comes despite the incredible success of their Bitcoin and Ethereum spot ETFs that were introduced earlier this year. By choosing to not pursue small-cap altcoins like Solana, BlackRock has opened up opportunities for other asset managers to enter this space, with some already making moves to introduce similar products to the market.
During an interview with Bloomberg, BlackRock’s Chief Investment Officer, Samara Cohen, explained the company’s stance on the matter. She emphasized the importance of investability and how certain assets need to meet specific criteria to be included in an ETF. According to Cohen, Bitcoin and Ethereum have clearly met these criteria, but the same cannot be said for Solana at this point in time. She mentioned that it might be a while before BlackRock considers diversifying into other cryptocurrencies beyond Bitcoin and Ethereum.
Both Bitcoin and Ethereum’s spot ETFs have been major successes for BlackRock. The iShares Bitcoin Trust (IBIT) has attracted nearly $20 billion in flows since its launch on January 11, making it the best-performing ETF in history during its first 30 days. Similarly, BlackRock’s Ethereum ETF has garnered $440 million in ETH after its initial week, as per on-chain data. These figures highlight the strong demand for these two leading cryptocurrencies in the ETF space.
Despite the growing popularity of Solana in the crypto space, BlackRock remains cautious about launching a Solana ETF. Robert Mitchnick, BlackRock’s Head of Digital Assets, explained that Solana is still far from meeting the investibility threshold required for an ETF. He emphasized that Solana lacks the maturity, liquidity, and track record compared to Bitcoin and Ethereum, making it a questionable choice for an ETF at this time. Mitchnick also reiterated that Bitcoin remains the top priority for most crypto-focused clients, followed by Ethereum, with very little interest in other cryptocurrencies.
In a surprising move, VanEck became the first firm to file for a Solana spot ETF in the United States back in June. The company argued that regulators should have no reason to reject their proposal for public trading, as SOL functions similarly to BTC and ETH as digital commodities, which have already received regulatory approval. Matthew Sigel, VanEck’s head of digital asset research, highlighted that SOL can be traded on digital asset platforms or used in peer-to-peer transactions, just like Ether on the Ethereum network. However, unlike Bitcoin and Ethereum, Solana currently does not have a futures market on the CME, which could complicate its path to approval as an ETF.
The debate over whether Solana is classified as a security token remains ongoing, with the SEC raising concerns in its recent lawsuit against Coinbase. This legal uncertainty surrounding the classification of Solana could further delay the introduction of a Solana ETF in the market. As regulators continue to assess the risks and potential of new cryptocurrencies, the future of Solana as an investible asset remains uncertain in the eyes of major institutional investors like BlackRock.
