Despite growing rumors that the world’s largest asset manager could file for a Solana ETF (exchange-traded fund) with the U.S. Securities and Exchange Commission (SEC), BlackRock executive Samara Cohen has ruled out the possibility, at least in the near future.
BlackRock throws cold water on Solana ETF hopes
In a recent x.com/crypto/status/1818028138862981143″ target=”_blank” rel=”noopener nofollow”>interview In an interview with Bloomberg, Samara Cohen, BlackRock’s chief investment officer for ETFs and indexes, 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 from investment considerations and from what we hear from our clients, btc and eth definitely fit that bill,” Cohen said. “I think it will be a while before we see anything else.”
This sentiment echoes the words of Robert Mitchnick, BlackRock’s head of digital assets, at the bitcoin 2024 conference over the weekend, who also expressed skepticism about adding a Solana ETF to the firm’s product lineup.
Mitchnick crypto-chief-shuts-down-solana-xrp-etf-hopes” target=”_blank” rel=”noopener nofollow”>aforementioned a number of reasons, including Solana's alleged lack of maturity, liquidity and track record grid compared to the more established bitcoin and ethereum markets. However, the path for a Solana ETF may be clearing for other asset managers, despite BlackRock’s misgivings.
Solana sheds the “security” label
As a Bitcoinist reported Earlier today, the recent amendment to the SEC’s complaint in the case against Binance resulted in SOL no longer being defined as a security by the regulator. Notably, this move could pave the way for asset managers to seek approval for Solana-based ETFs, as the asset’s classification as a security had been a potential hurdle.
While BlackRock remains on the sidelines, the Chicago Board Options Exchange (Cboe) has expressed support for Solana spot ETF applications submitted by asset managers VanEck and 21Shares ETF.
Nate Geraci, industry expert revealed Cboe filed “19b-4” forms for both Solana ETF proposals, signaling the start of the regulatory review process. Under SEC guidelines, the agency has 240 days to approve or deny Cboe’s applications, setting a potential decision deadline of early March 2025.
While BlackRock has yet to jump on the Solana ETF bandwagon, the shift regulatory landscape and growing interest from other major industry players suggests the prospects for a Solana-backed ETF could be improving.
Despite the positive news in the last few hours, SOL is currently trading at $180.30, recording losses of almost 5% in the 24-hour time frame. However, in recent days, the token has surpassed Binance Coin (BNB) in terms of market capitalization, securing the title of the fourth-largest cryptocurrency on the market with a valuation of $83.5 billion, according to CoinGecko. data.
Featured image of DALL-E, chart from TradingView.com
