BlackRock Executive Shuts Down Solana ETF Expectations
Samara Cohen, the chief investment officer of ETF and index investments at BlackRock, recently shared in an interview with Bloomberg that there are no current plans to pursue a Solana ETF in the foreseeable future. Cohen cited two main reasons for this decision: a lack of interest from clients and reservations about the overall development stage of the Solana ecosystem.
- Cohen emphasized that Bitcoin (BTC) and Ethereum (ETH) are the primary focus for BlackRock due to their market maturity and demand from clients.
- Robert Mitchnick, BlackRock’s head of digital assets, also voiced skepticism about adding a Solana ETF to their product lineup in light of concerns about Solana’s maturity and liquidity compared to Bitcoin and Ethereum.
Solana Overcomes ‘Security’ Label
Recent updates regarding the regulatory classification of Solana indicate a positive shift for the cryptocurrency. The SEC no longer considers SOL a security, potentially opening the door for asset managers to pursue Solana-based ETFs with greater ease.
- The Chicago Board Options Exchange (Cboe) has shown support for spot Solana ETF applications from asset managers 21Shares ETF and VanEck.
- The Cboe has initiated the regulatory review process for the Solana ETF proposals, which must be resolved by early March 2025 according to SEC guidelines.
Changing Regulatory Landscape for Solana ETFs
While BlackRock remains cautious about a Solana ETF, other industry players have expressed interest in exploring opportunities in the Solana market. The regulatory environment is evolving, with potential for increased acceptance of Solana-based ETFs in the near future.
- The regulatory review process for the spot Solana ETF applications by Cboe marks a significant step towards potential approval in the coming months.
- The shifting landscape suggests that the outlook for a Solana-backed ETF is becoming more favorable, despite BlackRock’s current stance.
Solana’s Market Performance and Position
Although SOL has experienced a slight decrease in value over the past 24 hours, recent market movements have propelled it to become the fourth-largest cryptocurrency by market capitalization. With a valuation of $83.5 billion, Solana has outperformed Binance Coin (BNB) in recent days, solidifying its position in the market.
Chart from TradingView.com
Hot Take: BlackRock’s Firm Stance on Solana ETFs
Despite growing rumors that the world’s largest asset manager may file a spot Solana ETF (exchange-traded fund) with the US Securities and Exchange Commission (SEC), BlackRock executive Samara Cohen has dismissed the possibility, at least in the near future.
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