BlackRock slams Solana ETF rumors, cites ‘no demand’

Over the past two weeks, Solana’s price surged 30%, outperforming both Bitcoin and Ethereum. Many believe this increase is linked to rumors about a potential Solana ETF. However black rock information black rock – Fintech solutionAdvisoryInvestment platform dashed these hopes.

In a recent Interview with BloombergSamara Cohen, BlackRock’s CIO for ETF and index investing, confirmed that Bitcoin and Ethereum will continue to be the primary cryptocurrencies traded through ETFs for the time being.

Disappointed? Here is all the information we have.

BlackRock clarifies its priorities

Cohen explained that there is currently little demand to add other altcoins, like Solana, to crypto ETFs. She noted that Bitcoin and Ethereum meet the required criteria for stability and investor interest, unlike other cryptocurrencies. She cited technical challenges, liquidity issues, and concerns about market manipulation as the main reasons why altcoins like Solana are not yet considered for ETFs. This view is supported by Robert Mitchnick, head of digital assets at BlackRock, who also sees no immediate future for additional crypto ETFs.

Bitcoin and Ethereum dominate the crypto market, with Bitcoin holding 55% and Ethereum 17% of the total market share. Other altcoins contribute less than double digits, making their inclusion in ETFs even more difficult. Despite Solana’s strong recent performance and market cap of $82 million, surpassing Binance’s BNB token, BlackRock remains cautious about expanding its ETF offerings beyond Bitcoin and Ethereum.

So, what’s next for crypto ETFs?

Cohen mentioned that crypto ETFs could be part of “model portfolios” by the end of 2024. Major financial institutions like Wells Fargo, Morgan Stanley, and UBS are evaluating how Bitcoin and Ethereum could fit into their portfolios. BlackRock’s Ethereum ETF, ETHA, has attracted significant investor interest since its launch.

It’s shaky ground for Solana

While some asset managers, like VanEck and 21Shares, are pushing for Solana ETF Due to high demand from the crypto community, approval remains uncertain. Despite Solana’s bullish outlook and analyst Ali Martinez’s prediction of a 900% upside, many experts doubt new crypto ETFs will be approved in 2024.

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EntrepreneurInvestorGeneral managerMember of the board of directors had planned several altcoin ETFs this year, but Bloomberg analyst Eric Balchunas pointed out that the final deadline for Solana ETFs is mid-March 2025, with a key date in November.