As a seasoned crypto investor with several years of experience in the market, I’ve seen my fair share of ups and downs, hype and disappointment. The recent comments from BlackRock’s Head of Digital Assets Robert Mitchnick regarding the future of crypto ETFs, specifically those tracking altcoins like Solana and XRP, have left me with mixed feelings.
During the Bitcoin Conference 2024’s opening day, BlackRock’s Digital Assets Head, Robert Mitchnick, expressed skepticism about the likelihood of additional crypto ETFs, such as those based on Solana and XRP, being approved in the near future. Contrary to some crypto experts’ beliefs that the approval of a spot Ethereum ETF would pave the way for more altcoin ETFs down the line.
BlackRock Crypto Chief Is Negative on More Crypto ETFs
Robert Mitchnick, head of BlackRock’s digital assets division, expressed skepticism towards the likelihood of crypto exchange-traded-funds (ETFs) being approved for assets like Solana’s SOL and Ripple’s XRP. During an interview with James Seyffart at the Bitcoin Conference, Mitchnick elaborated on his reasoning.
In simpler terms, it’s unlikely that we’ll have numerous crypto Exchange-Traded Funds (ETFs) anytime soon. Considering Bitcoin’s dominance with approximately 55% market share and Ethereum having around 18%, the next potential investable asset only amounts to roughly 3%. Unfortunately, it’s far from meeting the maturity and liquidity requirements needed for an ETF.
As an analyst, I can tell you that the speaker is emphasizing the persistence of crypto as a significant asset class in the financial market. He believes that more institutions will enter the competitive landscape of crypto. In contrast, competitors like VanEck have taken the initial steps towards launching Solana exchange-traded funds (ETFs).
Alternatively, Ether exchange-traded funds (ETFs) have experienced a lackluster debut following their launch. These products have seen two consecutive days of redemptions, with Grayscale’s ETHE experiencing significant outflows. Meanwhile, BlackRock is working to encourage inflows.
Although the SEC in the United States has yet to provide clear guidelines on crypto regulations, they have expressed a desire to establish boundaries. Notably, they are uneasy about Ethereum Spot ETFs providing a staking feature.
Nate Greaci Rejects Mitchnick’s Views
Nate Geraci, President of ETH Store, strongly opposes Mitchnick’s perspectives. He highlighted the European market as an example, where Exchange-Traded Products (ETPs) for cryptocurrencies such as Solana, XRP, and Cardano are readily available. “It’s just a matter of looking towards Europe to find ETPs for SOL, XRP, ADA, and so on,” Geraci remarked in surprise at BlackRock’s stance.
According to Geraci’s perspective on the regulatory scene, introducing comparable products in the United States would undoubtedly necessitate adjustments to existing regulations. Nonetheless, he remains hopeful regarding this aspect.
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2024-07-26 07:50