BlackRock, a leading investment management corporation, has dampened expectations for the imminent launch of exchange-traded funds (ETFs) tracking cryptocurrencies beyond Bitcoin and Ethereum.
In a recent interview with Bloomberg, the company’s senior ETF executive, Samara Cohen, explicitly stated that while Bitcoin and Ethereum meet the criteria for ETF inclusion, other digital assets like Solana (SOL) and XRP do not currently fit the bill.
BlackRock’s Focus on Bitcoin and Ethereum
Cohen emphasized the importance of investability and client demand in determining which cryptocurrencies are suitable for ETF products. While Bitcoin and Ethereum have garnered significant investor interest, other digital assets have yet to reach a similar level of maturity and liquidity.
This stance aligns with comments made by BlackRock’s head of digital assets, Robert Mitchnick, who suggested that the firm is unlikely to pursue a wide range of crypto ETFs. His focus remains primarily on Bitcoin and Ethereum due to their market dominance and investor preference.
Cohen noted
“We really look at the investability to see what meets the criteria, what meets the bar to be delivered in an ETF. For us, both in terms of investability and also what we hear from our clients, Bitcoin and Ethereum definitely meet that bar, but it will be a while before we see anything else.”
Challenges for Solana and XRP ETFs
The recent approval of spot Ethereum ETFs has sparked speculation about which cryptocurrency would be the next to gain ETF status. Solana, in particular, has emerged as a strong contender, with several firms filing applications for SOL-based ETFs. However, BlackRock’s stance suggests that the path to a Solana ETF may be more challenging than anticipated.
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The absence of CME futures for Solana, a crucial factor in the SEC’s approval process for Bitcoin and Ethereum ETFs, is another hurdle that Solana faces. While the cryptocurrency has experienced significant growth and surpassed Binance Coin in market capitalization, it still falls short of the criteria established by BlackRock and other major financial institutions for ETF inclusion.
The SEC’s recent decision to drop charges against certain third-party crypto asset securities, including Solana, Polygon’s MATIC, and Cardano’s ADA, may have implications for the broader crypto market. However, it does not necessarily pave the way for immediate ETF approvals for these assets.
BlackRock’s cautious approach to crypto ETFs highlights the challenges and complexities involved in bringing these products to market. While Bitcoin and Ethereum continue to dominate the conversation, the future of other cryptocurrencies in the ETF space remains uncertain.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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