BlackRock chief investment executive foresees little interest in ETFs beyond Bitcoin and Ethereum.
BlackRock investment officer Samara Cohen considers that while Bitcoin and Ethereum satisfied the minimum expectations for exchange-traded funds (ETFs), other digital assets have not come close.
Only Bitcoin and ETH Met Requirements for ETF
Cohen revealed in a Bloomberg TV interview that Bitcoin (BTC) and Ethereum (ETH) are the only crypto trades through ETFS. The senior ETF executive’s other digital assets are far away from meeting the minimum expectations to warrant ETFs.
Cohen indicates that beyond BlackRock’s technical difficulties in bringing the new ETFs, the appetite for expanding to other currency ETFs is nonexistent, particularly for Solana.
Cohen reiterated that BlackRock commits to investability in ascertaining if the underlying asset meets the bar that could be delivered in the ETF. The ETF executive disclosed that BlackRok listens to the clients besides examining for investability. While BTC and ETF Bitcoin satisfied the criteria, it would wait longer before seeing anything else.
The disclosure during the interview comes after the week of the Ethereum ETF debut, which saw the trading volume for crypto funds hit the highest level, above $14.8 billion, since May. The debut of ETH ETFs has triggered speculation on the subsequent crypto to have an exchange-traded product (ETP).
Solana is emerging as a likely candidate for asset managers to issue ETFs to trace its price movement. VanEck and 21Shares have already bid two separate filings to offer Solana ETFs.
Many market observers have a a bullish outlook, citing Solana’s fast and cheap transactions, unlike Ethereum. Nonetheless, Solana CME’s futures are lacking, unlike in the case of Bitcoin and Ethereum. Such is regarded as the primary roadblock for the US Securities and Exchange Commission (SEC) to approve the Solana ETF.
The digital assets head at BlackRock, Robert Mitchnick, revealed in his Bitcoin 2024 speech that clients consider BTC and ETH as complements rather than substitutes within the crypto portfolios.
BlackRock Client Base to Lean Towards BTC and ETH
Mitchnick indicated that the asset manager witnessed very little interest in crypto ETFs beyond BTC and ETH. Consequently, BlackRock is unwilling to venture beyond the two digital assets.
Mitchnick disclosed on July 25 that the client base is overwhelmingly leaning towards Bitcoin rather than ETH. Mitchnick informed the panel that the BlackRock journey would not exceed those two.
Mitchnick ruled out crypto ETFs witnessing a long list. Today, BlackRock is behind the world’s largest spot, Bitcoin ETF iShares Bitcoin Trust (IBIT), which was approved for trading in January. Recently, iShares Ethereum Trust ETF (ETHA) secured approval and has slight leadership over other ETH ETFS.
Mitchnick considers the entire store of value across the crypto space to be definitively a territory owned by Bitcoin. The executive admits that Ethereum is continually undertaking different applications, which is an aspect that Bitcoin is not doing. Such makes ETH a complement rather than a competitor or substitute to Bitcoin.
Mitchnick predicts that investors will ultimately allocate 20% of their crypto holdings to ETH ETFs, with the rest allocated to BTC. Today, BlackRock’s IBIT commands $22 billion in assets under management (AUM), while ETHA is headed for $280 million a week since the trading debut.
Solana Chances for Spot ETFs
The assumption of Solana ETF garnered steam when fund manager Franklin Templeton profiled Solana as an exciting and critical development capable of advancing the crypto space.
The daily chart shows Solana is range bound $176.47 to $183.91 in the past 24 hours. Comparatively, the Solana is exchanging hands 30% below the all-time high of $259.96 attained in early November 2021. Solana ranks fifth largest with a $84 billion market cap and exchanges hands at $181.57, CoinGecko data shows.
Although BlackRock is yet to clarify Solana ETF issuance, SOL has witnessed high market activity recently. According to CoinGecko, Solana realized $3,344 billion in daily trading volume in the past 24 hours, though 11.70% down, signaling a decline fall in activity.
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