As a seasoned researcher with over two decades of experience navigating the complex world of finance and technology, I have witnessed the rise and fall of numerous trends and technologies. The recent buzz surrounding Solana ETFs has certainly piqued my interest, but I find myself skeptical, at least for now.
Although there have been increasing whispers about BlackRock potentially submitting a Solana ETF application to the U.S. Securities and Exchange Commission, high-ranking BlackRock executive Samara Cohen has downplayed such speculation, suggesting it is unlikely in the immediate term.
BlackRock Pours Cold Water On Solana ETF Hopes
In a conversation with Bloomberg, Samara Cohen, BlackRock’s head of ETF and index investments, admitted that at this point, they aren’t planning to launch a Solana ETF soon. The reason being, there’s insufficient client interest and uncertainties about the maturity level of the Solana digital ecosystem.
“Cohen stated that for us, Bitcoin (BTC) and Ethereum (ETH) seem to pass the investability test based on factors like their market performance and client feedback. He also suggested that it might take some time before any other asset could meet this criteria.”
This sentiment echoes the words of Robert Mitchnick, BlackRock’s head of digital assets, at the 2024 Bitcoin conference over the weekend, who also expressed skepticism about adding a Solana ETF to the firm’s product lineup.
According to Mitchnick’s analysis, there are several concerns raised such as perceived immaturity, insufficient liquidity, and an unproven track record in the Solana network compared to more established markets like Bitcoin and Ethereum. Nevertheless, it appears that the route for a Solana ETF is becoming smoother for other investment managers, despite BlackRock’s reservations.
Solana Shakes Off ‘Security’ Label
According to Bitcoinist’s recent update, the SEC’s latest adjustment in its lawsuit against Binance has reclassified Solana (SOL) as not being a security under their regulation. This change could potentially simplify the process for asset managers to apply for Solana-based ETFs, as the previous classification of SOL as a security might have posed challenges.
In the meantime, BlackRock is choosing not to participate, but the Chicago Board Options Exchange (Cboe) has endorsed Solana ETF proposals presented by investment firms VanEck and 21Shares.
As an analyst, I’m sharing some insights based on the recent announcement by industry expert Nate Geraci. He mentioned that Cboe has submitted “19b-4” forms for their Solana ETF proposals, which indicates that the Securities and Exchange Commission (SEC) will commence its regulatory review process. According to SEC regulations, they have up to 240 days to either approve or deny these applications. Therefore, we might expect a decision from the SEC by early March 2025.
It appears that BlackRock isn’t rushing to create a Solana ETF at this time, but the evolving regulatory environment and growing attention from significant industry players could signal a promising future for such an exchange-traded fund (ETF) related to Solana.
Despite some upbeat developments recently, Solana (SOL) is presently being traded at $180.30, representing a decline of almost 5% within the last 24 hours. Yet, over the past few days, SOL has managed to exceed Binance Coin (BNB) in market capitalization, claiming the position of the fourth largest cryptocurrency on the market with an estimated value of $83.5 billion as per CoinGecko’s latest statistics.
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2024-07-31 09:12