Bitrabo Editorial
Despite rumors swirling around about the potential filing of a Solana ETF by the world’s largest asset manager with the US Securities and Exchange Commission (SEC), BlackRock executive Samara Cohen has dismissed this possibility for the time being.
BlackRock Cools Off on Solana ETF Prospects
In a recent interview with Bloomberg, Samara Cohen, BlackRock’s chief investment officer of ETF and index investments, indicated that the firm is not actively pursuing a Solana ETF in the near future due to a lack of client demand and concerns about the maturity of the Solana ecosystem.
Cohen stated, “For us, both from investment considerations and client feedback, BTC and ETH are the top choices. I believe it will take some time before we consider anything else.”
This view aligns with Robert Mitchnick, BlackRock’s head of digital assets, who expressed doubts about incorporating a Solana ETF into the firm’s offerings at the 2024 Bitcoin conference, citing concerns about the maturity, liquidity, and track record of the Solana network compared to Bitcoin and Ethereum.
Solana Shedding ‘Security’ Label
A recent update to the SEC’s complaint in the Binance case has removed SOL from being classified as a security by the regulator, potentially opening the door for asset managers to pursue Solana-based ETF approvals.
While BlackRock remains cautious, the Chicago Board Options Exchange (Cboe) has shown support for spot Solana ETF applications from asset managers VanEck and 21Shares ETF. Cboe has initiated the regulatory review by filing “19b-4” forms for both Solana ETF proposals, with a potential decision deadline set for early March 2025 as per SEC guidelines.
Despite BlackRock’s hesitance, the evolving regulatory landscape and increased interest from other industry players indicate improving prospects for a Solana-backed ETF.
While SOL is currently trading at $180.30 with a nearly 5% loss in the past 24 hours, it has recently surpassed Binance Coin (BNB) in market capitalization to become the fourth-largest cryptocurrency with a valuation of $83.5 billion, according to CoinGecko data.
Image source: DALL-E, chart from TradingView.com