BlackRock Focuses on Bitcoin and Ethereum, Opts Out of Solana ETFs for Now
Bitcoin and Ethereum are set to remain the only cryptocurrencies traded via ETFs in the near future, according to BlackRock, the world’s largest asset manager. Samara Cohen, Chief Investment Officer for ETF and Index Investments at BlackRock, emphasized that while Bitcoin and Ethereum meet the stringent criteria for exchange-traded funds, other digital assets, including Solana, are not yet ready for such a leap.
Strong Performance of Bitcoin and Ethereum ETFs
BlackRock’s Bitcoin and Ethereum ETFs have seen impressive success. The Grayscale Ethereum Trust (ETHE) and BlackRock’s iShare Ethereum Trust (ETHA) have generated significant trading volumes, with the Ethereum ETFs alone amassing $951 million on their second day. The firm’s Bitcoin ETF, IBIT, has also performed exceptionally well, breaking records and attracting over $19.5 billion in net inflows since January.
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No Immediate Plans for Solana ETFs
Despite the success of Bitcoin and Ethereum ETFs, BlackRock has no immediate plans to launch a Solana ETF. Cohen cited a lack of market demand and technical challenges as key reasons for this decision. “We really look at the investability to see what meets the criteria, what meets the bar to be delivered in an ETF,” Cohen told Bloomberg TV. “Both in terms of investability and also what we hear from our clients, Bitcoin and Ethereum definitely meet that bar, but it will be a while before we see anything else.”
Robert Mitchnick, BlackRock’s head of digital assets, echoed Cohen’s sentiments, noting that there is very little interest among clients in cryptocurrencies beyond Bitcoin and Ethereum. Speaking at the Bitcoin 2024 event in Nashville, Mitchnick said, “I don’t think we’re gonna see a long list of crypto ETFs,” reinforcing BlackRock’s cautious approach.
Diverging Views Among Asset Managers
While BlackRock remains focused on Bitcoin and Ethereum, other asset managers are exploring the potential of Solana. Franklin Templeton recently described Solana as an “exciting and major development,” and 21Shares filed for a spot Solana ETF with the U.S. Securities and Exchange Commission (SEC). VanEck also sees promise in Solana, citing its high throughput, low fees, and strong community as attractive features for an exchange-traded fund.
