BlackRock Confirms No Immediate Plans for Solana ETF

BlackRock, the prominent issuer of Bitcoin and Ethereum exchange-traded funds (ETFs), has yet to make any plans to launch an ETF for the Solana blockchain.

This announcement comes from two senior executives, quashing recent speculation about a potential Solana ETF.

Solana’s current market performance

Despite Solana’s strong performance, which is nearing its annual high, BlackRock remains uninterested in a Solana ETF. However, other asset managers, such as VanEck, have already submitted an application to the US Securities and Exchange Commission (SEC) for a Solana ETF.

During an interview on Bloomberg TV, Samara Cohen, BlackRock’s CIO of ETF and Index Investments, clarified the firm’s stance. She cited client demand and the ‘inevitability’ of assets as key factors in their decision-making process. Cohen emphasized that Bitcoin and Ethereum meet the criteria for an ETF, while Solana does not. She stated:

“Not in the near term. We look at the instability to see what meets the criteria, meets the bar, to be delivered in an ETF. For us, both due to instability considerations and what we hear from our clients, BTC and ETH meet that bar. It will be a while before we see anything else.

Robert Mitchnick, BlackRock’s Head of Digital Assets, echoed this sentiment at the Bitcoin Conference 2024. Mitchnick highlighted several reasons why a Solana ETF is not feasible now, including the blockchain’s maturity, liquidity, and market capitalization. He noted:

“I don’t think we’ll see a long list of crypto ETFs. If you think of Bitcoin, it represents about 55% of the market cap today. ETH is at 18%. The next plausible investible asset is at, like, 3%. It’s not close to being at that threshold or track record of maturity, liquidity, et cetera.”