Despite growing rumors that the world’s largest asset manager is considering filing a Solana ETF (exchange-traded fund) with the U.S. Securities and Exchange Commission (SEC), BlackRock executive Samara Cohen has dismissed the possibility, at least in the near future.
BlackRock throws cold water on Solana ETF piles
In a recent interview Speaking to Bloomberg, Samara Cohen, BlackRock’s chief investment officer of ETF and index investing, acknowledged that the firm was not actively pursuing a Solana ETF in the near term. Cohen cited a lack of client demand and concerns about the overall maturity of the Solana ecosystem.
“For us, both in terms of investment considerations and what we hear from our customers, BTC and ETH certainly meet that standard,” Cohen said. “I think it’s going to be a while before we see anything else.”
This sentiment echoes what BlackRock’s head of digital assets, Robert Mitchnick, said at the Bitcoin 2024 conference this past weekend, when he too expressed skepticism about adding a Solana ETF to the firm’s product offering.
Mitchnick quoted a number of reasons, including Solana’s perceived lack of maturity, liquidity and track record network compared to the more established Bitcoin and Ethereum markets. However, the path for a Solana ETF could be clear for other asset managers, despite BlackRock’s hesitation.
Solana shakes off ‘safety’ label
As a Bitcoinist reported Earlier today, the SEC’s recent amendment to the complaint against Binance resulted in SOL no longer being defined as a security by the regulator. The move could give asset managers the opportunity to seek approval for Solana-based ETFs, as the asset’s classification as a security has posed a potential hurdle.
While BlackRock remains on the sidelines, the Chicago Board Options Exchange (Cboe) has expressed its support for the spot Solana ETF applications filed by asset managers VanEck and 21Shares ETF.
Industry expert Nate Geraci revealed that Cboe has filed “19b-4” forms for both Solana ETF proposals, signaling the beginning of the regulatory review process. Under SEC guidelines, the agency has 240 days to approve or deny Cboe’s applications, giving it a potential decision deadline of early March 2025.
While BlackRock may not jump on the Solana ETF bandwagon just yet, the shift regulatory landscape and increased interest from other major players in the sector suggests the prospects for a Solana-backed ETF may be improving.
Despite the positive news in the past few hours, SOL is currently trading at $180.30, down almost 5% in the 24-hour time frame. However, in recent days, the token has overtaken Binance Coin (BNB) in terms of market capitalization, securing the title of the fourth-largest cryptocurrency in the market with a valuation of $83.5 billion, according to CoinGecko facts.
Main image of DALL-E, chart from TradingView.com