BlackRock: There will be no other cryptocurrency ETFs in the foreseeable future
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BlackRock: There will be no other cryptocurrency ETFs in the foreseeable future
BlackRock stated that only Bitcoin and Ethereum will meet the ETF trading criteria in the future. Although Solana is favored, its ETF application faces hurdles due to the lack of CME futures.
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According to BlackRock's senior ETF executive, only Bitcoin and Ethereum are expected to be tradable via ETFs in the foreseeable future.
Samara Cohen, Chief Investment Officer for ETFs and Index Investments at BlackRock, said in a Bloomberg Television interview that while Bitcoin and Ethereum meet the investment giant’s minimum criteria for ETFs, no other digital assets come close to meeting those standards.
Cohen also noted that aside from technical challenges in launching new ETFs, there is currently little market demand for ETFs on other cryptocurrencies—especially Solana.
"We’re really focused on investability to determine which assets qualify and which can be delivered through an ETF," Cohen said during the interview. "From both an investability standpoint and client feedback, Bitcoin and Ethereum clearly qualify, but we may have to wait some time before seeing other assets enter the market."
The successful launch of Ethereum ETFs last week pushed weekly trading volume in crypto funds to its highest level since May, surpassing $14.8 billion, sparking speculation about what comes next.
Solana has been seen as the most likely candidate, and indeed, VanEck and 21Shares have each filed applications for a Solana ETF in the United States.
Many remain optimistic about Solana as an asset, viewing it as a faster and cheaper alternative to Ethereum.
However, there are currently no Solana CME futures contracts comparable to those for Bitcoin and Ethereum, which is considered a major obstacle for U.S. Securities and Exchange Commission (SEC) approval of a Solana ETF.
This assumption was further reinforced when fund manager Franklin Templeton described Solana as "an exciting and significant development that we believe will drive progress in the crypto space."
According to data from CoinGecko, Solana accounts for approximately 3% of the total cryptocurrency market value, with a market capitalization of $82 billion.
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