BlackRock CIO Affirms No Solana ETF in Near Future

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As a seasoned researcher with extensive experience in the financial industry and a keen interest in the evolving world of cryptocurrencies, I find myself intrigued by the recent statements from BlackRock CIO for ETF and Index Investments, Samara Cohen. Her affirmation that BlackRock is not pursuing any ETF, including the spot Solana ETF in the near future, aligns with my own observations of the current market landscape.

In a Bloomberg interview on July 29, Samara Cohen, BlackRock’s Chief Investment Officer for ETF and Index Investments, confirmed that the asset management firm has no plans to launch any cryptocurrency exchange-traded funds (ETFs), including a Solana spot ETF, in the immediate future. She went on to state that while Bitcoin and Ethereum have met their expectations, none of the other crypto assets currently compare to them.

BlackRock – No Appetite for Solana ETF

Bitcoin makes up approximately half (55%) of the entire cryptocurrency market, while Ethereum accounts for around one seventh (17%). The remaining altcoins collectively hold less than 43% of the market share. Given this distribution, there may be valid concerns regarding market manipulation and liquidity if new crypto Exchange-Traded Funds (ETFs), such as the Solana ETF, are introduced into the market.

According to Cohen from BlackRock, encountering significant technical hurdles is inevitable when trying to introduce more cryptocurrency-based ETFs onto the market, given that the demand for such products, including those based on Solana, appears to be relatively low at this time. This observation was made in a recent Bloomberg interview.

1. To evaluate whether something qualifies as an ETF, we focus on its investability and whether it meets our standards. In this regard, Bitcoin and Ethereum certainly pass the test, but other potential candidates may take some time to become viable.

Last week at the Bitcoin conference, Robert Mitchnick, head of digital assets at BlackRock, mirrored Samara Cohen’s stance when he stated that it appears unlikely for future cryptocurrency Exchange-Traded Funds (ETFs) to emerge in the financial market.

Conversely, entities such as VanEck are actively advocating for a Solana Exchange-Traded Fund (ETF), citing robust interest from the cryptocurrency sector. In recent developments, Solana has ascended to the fourth position in the market cap rankings by surpassing BNB. Nevertheless, amidst the broader market downturn, Solana’s price is currently experiencing a 5% dip, trading at $182 as of this writing.

Crypto ETFs to Be Part of Model Portfolios

According to BlackRock CIO Samara Cohen, it’s expected that crypto ETFs will be incorporated into their “Model portfolios” by the end of 2024. This response was given in response to a question regarding the stance of large investment firms like Wells Fargo, Morgan Stanley, UBS, and others on integrating and advocating for crypto ETFs.

1. Option: She mentioned that each of these financial institutions is carrying out thorough research, assessment of risks, among other tasks, as they consider the place of Bitcoin (BTC) and Ethereum (ETH) within their investment portfolios.

Samara Cohen, BlackRock’s Chief Investment Officer for ETFs and Index Investments, discusses the iShares Ethereum Trust ETF (ETHA) and anticipates that crypto ETFs will be incorporated in model portfolios by the end of this year and extending into 2025.
— Bloomberg Crypto (@crypto) July 29, 2024

Last week, BlackRock successfully launched the Ethereum ETF, named ETHA, which has been drawing the largest inflows among similar products in the market.

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2024-07-30 07:58