According to U.Today, the broader cryptocurrency community is celebrating the commencement of trading for spot Ethereum ETFs. However, hopes for the launch of related altcoin ETFs seem unlikely. This concern persists despite initial filings for a Solana-based ETF by VanEck and 21Shares. BlackRock, a major asset manager, appears reluctant to embrace other altcoins. Robert Mitchnick, BlackRock’s Digital Assets Head, stated that BlackRock sees “very little interest” in crypto beyond Bitcoin and Ethereum. This revelation could significantly impact the approval of applications already filed for these ETF products. BlackRock wields considerable influence in the financial world and the cryptocurrency ecosystem. There are assumptions that its filings for Bitcoin and Ethereum ETFs facilitated regulatory approval. The lack of interest from this major asset manager in the crypto space threatens the approval of other altcoin ETFs.
The process of obtaining regulatory approval and scrutiny by the U.S. SEC is rigorous. Ripple’s CEO Brad Garlinghouse, commenting on an earlier delay for spot Ethereum ETF approval, joked about how the SEC had to be “dragged kicking and screaming” to approve the spot Bitcoin ETF. However, he seemed optimistic that XRP ETF approval remains inevitable. The recent update about BlackRock’s stance on other altcoins indicates that not much pressure will be exerted on the regulatory body. Stakeholders remain unclear about how other asset managers will respond. As reported by U.Today, Franklin Templeton asset manager and Japan’s SBI Holdings are set to partner for an anticipated ETF launch in Japan, where spot Bitcoin and Ether ETF products have already been introduced. The move is believed to be in preparation for an XRP and Solana ETF. However, Franklin Templeton has not indicated interest in replicating this in the U.S.
