Solana and XRP ETF Potential Approval Under Threat, Here’s Reason

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As a seasoned researcher with extensive experience in the financial and cryptocurrency industries, I cannot help but express my concern over the recent developments regarding the approval of altcoin ETFs, particularly those based on Ethereum, Solana, and other lesser-known cryptocurrencies.

The excitement in the cryptocurrency world grows as trading for Ethereum (ETF) spots begins, but expectations for similar launches of altcoin ETFs remain uncertain. This apprehension persists despite early filings for a Solana-based ETF from VanEck and 21Shares.

BlackRock’s reluctance to embrace altcoins

Based on a recent report, the massive investment firm BlackRock, which manages trillions of dollars, appears hesitant towards investing in altcoins besides Bitcoin and Ethereum. Robert Mitchnick, who heads Blackrock’s Digital Assets department, stated that there is “little demand” or “scant interest” within the company for cryptocurrencies other than Bitcoin and Ethereum.

Based on my extensive experience in the financial industry, I believe that BlackRock’s recent revelation of its entry into the crypto market could have a substantial influence on the approval process for the ETF applications already submitted to the regulators. BlackRock is a towering figure in the financial realm, and with its newfound interest in cryptocurrencies, it now wields considerable sway in both traditional finance and the emerging crypto ecosystem.

A prominent asset manager’s indifference towards cryptocurrencies could hinder the acceptance of other alternative coin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Navigating the intricacies of SEC approval and enduring their rigorous examination is no small feat.

Brad Garlinghouse, the CEO of Ripple, made a light-hearted remark during an interview regarding the previous hold-up in the SEC’s decision to approve a spot Ethereum ETF. He quipped that the Securities and Exchange Commission (SEC) had to be “reluctantly compelled” or “forced” to give their approval for a spot Bitcoin ETF. Nevertheless, Garlinghouse expressed confidence that the approval of an XRP ETF remains a certainty.

Without BlackRock, how will others fare?

The latest news regarding BlackRock’s position on certain altcoins indicates a decrease in regulatory pressure. In light of this ambiguity, it is unclear how other asset management firms will react.

According to U.Today’s report, Franklin Templeton, a renowned asset manager, and SBI Holdings, a Japanese financial giant, are planning to collaborate on the launch of an anticipated exchange-traded fund (ETF) in Japan. This potential partnership comes after the introduction of spot Bitcoin and Ether ETFs in Japan. The forthcoming ETF is speculated to focus on XRP and Solana.

Franklin Templeton has not indicated interest in replicating this in the U.S.

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2024-07-26 17:53