Will Solana, XRP ETFs Become a Reality? BlackRock Tempers Expectations

BlackRock’s head of digital assets expresses doubt about interest in ETFs beyond Bitcoin and Ethereum.

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  • BlackRock is skeptical about interest in non-Bitcoin, Ethereum ETFs.
  • Solana gains 5% despite BlackRock’s cautious stance.
  • Other institutions, including Franklin Templeton, donโ€™t share that stance. 

Exchange-traded funds (ETFs) have been called the key to institutional investment in crypto, offering a regulated way for traders to gain exposure to digital assets. However, traders in the US have so far only had access to Bitcoin and Ethereum ETFs. Yet, immediately after the recent Ethereum EFT approvals, there has been talk of expanding ETFs to other assets. In particular, Solana and XRP seem to be the most likely candidates. 

While some analysts and institutions bet on this development, including VanEck, which recently filed for Solana, others are skeptical. BlackRock, for example, believes that other ETFs are unlikely. 

BlackRockโ€™s Cautions on Solana, XRP ETFs

Altcoins like Solana and XRP may not be getting their ETFs soon. On Friday, July 26, Robert Mitchnick, BlackRockโ€™s head of digital assets, spoke at the Bitcoin Conference about crypto ETFs. Mitchnick highlighted that their clients are mainly interested in Bitcoin and Ethereum and show little interest in ETFs tied to other cryptocurrencies.ย 

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โ€œOur client base today overwhelmingly invests in Bitcoin first and then somewhat in ETHโ€ฆ and thereโ€™s very little interest beyond those two. I donโ€™t think weโ€™re going to see a long list of crypto ETFs,โ€ Mitchnick said.

BlackRockโ€™s opinion on altcoin ETFs is important because they have unique insights into the industry. If their clients are not interested in Solana ETFs, this could indicate that even if an ETF is approved, it wonโ€™t matter too much for the price. 

BlackRock’s CEO Larry Fink, once a notable Bitcoin skeptic, has changed his position over the years, calling Bitcoin โ€œdigital gold.โ€ 

Split Opinions on Solana EFTs

Despite BlackRockโ€™s skepticism, other firms have a much more bullish take on altcoin ETFs. Solana got the biggest vote of confidence after prominent asset manager VanEck filed for a Solana EFT on June 27, just weeks after the Ethereum ETF approval.

Moreover, as BlackRock expressed its skeptical view, investment firm Franklin Templeton praised Solana. The firm praised Solanaโ€™s technology and growing ecosystem, putting it alongside Bitcoin and Ethereum. 

Whether or not altcoin EFTs will become a reality depends on regulation. The current Securities and Exchange Commission leadership is not thrilled with the idea. For that reason, Bloomberg crypto analyst Eric Balchunas suggested that a spot Solana ETF might be delayed until after the US elections in November. 

On the Flipside 

  • BlackRockโ€™s take conflicts with earlier reports on July 1, with some outlets and influencers saying that BlackRock is filing for a Solana ETF the same month. The unconfirmed reports did not come with sources. 
  • In a few months since its launch, BlackRockโ€™s Bitcoin ETF attracted $10 billion in assets under management. 

Why This Matters

BlackRockโ€™s cautious stance is important because of its influence in the financial industry. Their view reflects institutional sentiment and also influences other major players. 

Read more about BlackRock CEO changing his position: 
BlackRock CEO Reverses on Bitcoin: โ€˜I Look at It as Digital Goldโ€™

Read more about Solanaโ€™s latest developments: 
Solana Finally Gets Restaking: Why It’s the Key to Decentralization

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is DailyCoinโ€™s journalist, focusing on Solana and crypto exchanges. David currently doesnโ€™t hold any crypto.

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