BlackRock: Bitcoin and Ethereum Only Cryptos Tradable via ETFs, No Plans for Others Soon

BlackRock, one of the largest asset management firms, has made it clear that, for the foreseeable future, Bitcoin and Ethereum will be the only cryptocurrencies traded via Exchange-Traded Funds (ETFs). In an interview with Bloomberg TV, Samara Cohen, BlackRock’s chief investment officer for ETF and index investments, stated that while Bitcoin and Ethereum meet the minimum requirements set by the investment giant for ETFs, no other digital asset comes close.

Cohen emphasized that beyond technical challenges in launching new ETFs, there is currently a lack of demand for other currency ETFs, such as Solana. She mentioned, “We really look at the investability to see what meets the criteria, what meets the bar to be delivered in an ETF. For us, both in terms of investability and also feedback from our clients, Bitcoin and Ethereum definitely meet that bar, but it will be some time before we see anything else.”

The recent successful launch of Ethereum ETFs fueled speculation about what might come next in the crypto ETF market. Solana has been touted as a potential candidate, with filings for Solana ETFs submitted in the US by firms like VanEck and 21Shares. Many view Solana favorably due to its reputation as a faster and more cost-effective alternative to Ethereum.

Despite the interest in Solana, hurdles remain for the approval of a Solana ETF, notably the lack of Solana CME futures, which are available for Bitcoin and Ethereum. This absence is considered a significant obstacle for the SEC to greenlight a Solana ETF.

The buzz around Solana as a potential ETF asset was further affirmed when fund manager Franklin Templeton described Solana as an “exciting and major development” that could drive the crypto space forward. Currently, Solana represents around 3% of the total cryptocurrency market value, with a market capitalization of $82 billion.

Given BlackRock’s stance and the lack of immediate plans for additional crypto ETFs beyond Bitcoin and Ethereum, the market will be closely watching developments in the crypto space, particularly regarding the potential launch of a Solana ETF in the future.

Edited by Sebastian Sinclair