BlackRock: Solana ETF Unlikely Due to Technical Hurdles and Market Concerns

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In the last two weeks, Solana has jumped 30%, outpacing both Bitcoin and ETH. Therefore, many are anticipating that this surge is coming due to Solana ETF rumors. However, Blackrock has shattered the dreams of many Solana investors. In a recent Bloomberg interview, BlackRock’s CIO for ETF and Index Investments, Samara Cohen, emphasized that Bitcoin and Ethereum will remain the primary cryptocurrencies traded via ETFs in the coming months. 

According to Cohen, no significant demand exists for other altcoins, including Solana, to be included in crypto ETFs. 

The Appetite for Solana ETF

Cohen explained that while Bitcoin and Ethereum have met the instability and client interest criteria, other cryptocurrencies have not reached the same level. She mentioned technical difficulties and concerns about liquidity and market manipulation are major obstacles to introducing ETFs for altcoins like Solana. This view aligns with BlackRock’s head of digital assets, Robert Mitchnick, who also sees no immediate future for other crypto ETFs.

Technical Hurdles

Bitcoin and Ethereum dominate the crypto market, with Bitcoin holding 55% and Ethereum 17% of the total market share. The rest of the altcoins fall below double-digit contributions, further complicating the case for their inclusion in ETFs. Despite Solana’s recent performance and market cap of $82 million, including surpassing Binance’s BNB token in market capitalization, BlackRock remains cautious about expanding its ETF offerings beyond Bitcoin and Ethereum.

Crypto ETFs in Model Portfolios

Moreover, Cohen revealed that crypto ETFs could soon become part of “Model portfolios” by the end 2024. Major fund houses like Wells Fargo, Morgan Stanley, and UBS are conducting due diligence and risk analysis to determine the role of Bitcoin and Ethereum in their portfolios. BlackRock’s Ethereum ETF, ETHA, has seen significant inflows since its launch, indicating strong investor interest.

Future Prospects for Other Altcoins

While other asset managers, such as VanEck and 21shares, are pushing for Solana ETFs, claiming strong demand from the crypto community, the likelihood of approval remains uncertain. Despite Solana’s bullish price outlook and analyst Ali Martinez’s prediction of a 900% surge, many experts remain skeptical about new crypto ETFs being approved in 2024.

Ripple CEO Brad Garlinghouse had earlier forecasted multiple altcoin ETFs launching this year. Still, Bloomberg analyst Eric Balchunas highlighted that the final deadline for Solana ETFs is mid-March 2025, with a crucial date in November.

Do you think Solana ETF will fail to hit the market this year? Tell us your views.