Solana just surged 30% in the last two weeks, leaving behind both Bitcoin and Ethereum, leading many to speculate that this rise is due to rumors of a Solana ETF.
But in a Bloomberg interview, BlackRock’s CIO, Samara Cohen shared that Bitcoin and Ethereum will remain the main cryptocurrencies traded via ETFs in the near future, and there are no plans for Solana ETF.
Solana ETF may coming, but not now
Cohen told that while Bitcoin and Ethereum already met the instability and client interest criteria, for issuing an ETF, other cryptocurrencies like Solana haven’t.
She highlighted that technical problems, liquidity concerns, and fears of market manipulation are all major barriers to introducing ETFs for altcoins.
And Solana isn’t an exception. This perspective is also shared by BlackRock’s head of digital assets, Robert Mitchnick, who sees no immediate future for ETFs based on other cryptocurrencies.
Solana is hyped, but this is not enough for an ETF
Bitcoin is the king of the industry, it’s dominate the crypto market while Ethereum is the second, with Bitcoin holding 55% and Ethereum 17% of the total market share.
The other altcoins, millions of alts, in fact, including Solana, contribute way less significantly, which complicates their case for ETF inclusion.
Despite Solana’s impressive rise and its market cap of $82 million, surpassing Binance’s BNB token, BlackRock still remains cautious about expanding its ETF offerings beyond Bitcoin and Ethereum.
Cohen also revealed that crypto ETFs might soon be included in the so-called model portfolios by the end of 2024, as major fund houses like Wells Fargo, Morgan Stanley, and UBS are evaluating the role of Bitcoin and Ethereum in their portfolios.
BlackRock’s Ethereum ETF, ETHA, saw big inflows since its launch, showing strong investor interest. But this number is still only fragment’s of the Bitcoin ETFs inflows.
Rising Solana price won’t accelerate the bureaucracy
Other asset managers like VanEck and 21Shares are advocating for Solana ETFs, citing strong demand from the crypto community.
The problem is ETFs aren’t for the crypto community, but for the wider investment sector. Numbers are nice, yes, but despite Solana’s positive price outlook and predictions like analyst Ali Martinez’s forecast of a 900% surge, many experts doubt that new crypto ETFs will be approved in 2024.
Ripple CEO Brad Garlinghouse predicted multiple altcoin ETFs launching this year, but Bloomberg analyst Eric Balchunas pointed out that the final deadline for Solana ETFs is mid-March 2025, with a significant date in November.
