Solana ETF Rumors Dashed as BlackRock CIO Emphasizes Bitcoin and Ethereum Focus

In the last two weeks, Solana has jumped 30%, outpacing both Bitcoin and ETH. Therefore, many are anticipating that this surge is coming

Solana has outperformed both Bitcoin and ETH in the last two weeks with a 30% surge. As a result, many are speculating that this surge is being caused by rumors of a Solana ETF. However, Blackrock may have just put a damper on the dreams of many Solana investors.

In a recent interview with Bloomberg, BlackRock’s CIO for ETF and Index Investments, Samara Cohen, stated that Bitcoin and Ethereum will continue to be the primary cryptocurrencies available for trading via ETFs in the upcoming months.

According to Cohen, there is not enough demand for other altcoins, including Solana, to be included in crypto ETFs.

The Appetitie for Solana ETF

Cohen went on to explain that while Bitcoin and Ethereum meet the criteria for volatility and client interest, other cryptocurrencies have not reached the same level. She highlighted technical challenges and concerns about liquidity and market manipulation as key obstacles to introducing ETFs for altcoins such as Solana. This view is also shared by BlackRock’s head of digital assets, Robert Mitchnick, who does not foresee any other crypto ETFs in the immediate future.

Technical Hurdles

Bitcoin and Ethereum hold the lion’s share of the crypto market, with BTC and ETH contributing 55% and 17% to the total market capitalization, respectively. The remaining altcoins each contribute less than 10%, making the case for their inclusion in ETFs weaker. Despite Solana’s recent strong performance and market cap of $82 million, which even saw it surpass Binance’s BNB token in market capitalization, BlackRock is still hesitant to expand its ETF offerings beyond Bitcoin and Ethereum.

Crypto ETFs in Model Portfolios

In other news, Cohen also revealed that crypto ETFs could be included in “Model portfolios” by the end of 2024. Several major fund houses, including Wells Fargo, Morgan Stanley, and UBS, are conducting due diligence and risk analysis to determine the role of Bitcoin and Ethereum in their portfolios. Notably, BlackRock’s Ethereum ETF, ETHA, has seen substantial inflows since its launch, indicating strong investor interest in the asset.

Future Prospects for Other Altcoins

While other asset managers, such as VanEck and 21shares, are advocating for Solana ETFs, citing high demand from the crypto community, the approval for such ETFs remains uncertain. Despite Solana’s bullish price outlook and analyst Ali Martinez’s bold prediction of a 900% price surge, many experts are skeptical of any new crypto ETFs being approved in 2024.

Earlier, Ripple CEO Brad Garlinghouse had predicted the launch of multiple altcoin ETFs this year. However, Bloomberg analyst Eric Balchunas pointed out that the final deadline for Solana ETFs is mid-March 2025, with a critical date in November.

What are your thoughts on the possibility of Solana ETF failing to hit the market this year? Share your views in the comments below.

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