🚨Crypto: BlackRock doubts approval of Solana and XRP ETFs!
✅Hopes for the introduction of new crypto ETFs are met with notable skepticism, despite the recent approval of an ETF on ether. Indeed, BlackRock’s head of digital assets, Robert Mitchnick, recently expressed reservations about the future of ETFs for altcoins like Solana and XRP. His comments have sparked mixed reactions in the industry.
🚨BlackRock's Outlook on Crypto ETFs
✅Robert Mitchnick recently expressed doubts about the approval of new ETFs based on altcoins such as Solana (SOL) and Ripple (XRP). In an interview with Bloomberg’s James Seyffart at the Bitcoin Conference 2024, Mitchnick said, “I don’t think we’re going to see a long list of crypto ETFs.” He noted that bitcoin and ether make up 55% and 18% of the total market cap, respectively. In terms of maturity and liquidity, these two cryptos far outperform other altcoins.
✅Mitchnick noted that assets like Solana don’t even represent 3% of the total market cap. This makes them less attractive for ETFs. He also discussed the SEC’s cautious stance, which he said is uncomfortable with ETFs offering staking services. This could hamper the development of new ETFs based on other cryptos, despite growing interest from institutional investors.
🚨Divergent reactions in the industry
✅Nate Geraci, president of ETH Store, disagreed with Mitchnick’s statements. He noted that Europe has already integrated similar financial products for altcoins like Solana, XRP, and Cardano.
✅“You only have to look at Europe to see ETPs on SOL, XRP, ADA, etc.,” he said. Geraci added that the adoption of similar products in the US would require regulatory changes. However, he remains optimistic that this is a possibility.
✅Mitchnick’s comments and the reactions they have generated highlight the challenges and differences of opinion surrounding the integration of altcoins into ETFs.
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