As a seasoned researcher with years of experience in the dynamic world of finance and technology, I find BlackRock’s decision to hold off on launching a Solana ETF intriguing. While it’s clear that BlackRock is focusing on assets that meet their stringent investability criteria, as evidenced by the success of their Bitcoin and Ethereum ETFs, it seems Solana may still be playing catch-up.
During a recent conversation with Bloomberg, it was made clear by BlackRock’s Chief Investment Officer, Samara Cohen, that they currently do not have immediate plans to introduce a Solana (SOL) Exchange Traded Fund (ETF).
Cohen clarified that BlackRock’s choice is based on the investment standards it uses when evaluating potential assets for Exchange-Traded Funds (ETFs). At present, Bitcoin and Ethereum pass these standards, whereas Solana does not.
[BLOOMBERG] BlackRock CIO Samara Cohen: Spot $SOL ETF Not Happening Soon$BLK — BecauseBitcoin.com (@BecauseBitcoin) July 30, 2024
“She pointed out that we carefully consider an ETF’s investment worthiness – identifying what fits the requirements, what rises to the level of delivery.”
Since its debut on January 11, the BlackRock Bitcoin ETF, iShares Bitcoin Trust (IBIT), has garnered significant success, attracting approximately $20 billion in investments. In a similar vein, BlackRock’s Ethereum ETF has rapidly amassed $440 million in assets under management. These figures underscore BlackRock’s strategic interest in prominent cryptocurrencies that hold strong market positions.
Robert Mitchnick, who leads Digital Assets at BlackRock, pointed out during Bitcoin Nashville 2024 that Solana hasn’t reached the 3% market cap requirement for assets that can be considered as potential investments yet. Furthermore, at this moment, Solana lacks a futures market on the Chicago Mercantile Exchange (CME), which is crucial in securing approval for Bitcoin ETFs.
Meanwhile, other asset managers are moving forward with plans for Solana. VanEck has filed for a Solana spot ETF, arguing that SOL, like Bitcoin and Ethereum, functions as a digital commodity.
Franklin Templeton indicates a possible creation of an Exchange-Traded Fund (ETF) focused on Solana, suggesting increasing curiosity towards broadening cryptocurrency investment choices.
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2024-07-31 05:08