BlackRock Rules Out ETF for Solana to Next Year

BlackRock has denied any plans to launch a Solana ETF next year. The firm's executives have publicly downplayed the concept, thus underlining no interest in altcoin-based ETFs.

An ETF analyst, Nate Geraci, has cast doubt on the possibility of BlackRock launching a Solana ETF. According to Geraci, BlackRock will only consider a spot ETF for Solana if it is combined with CME-traded futures and a futures-based ETF.

This analysis aligns with recent statements by BlackRock representatives, who have downplayed the idea of launching altcoin ETFs. Cohen, the firm’s Chief Information Officer, stated directly that the firm does not currently see a need for them.

On the other hand, BlackRock has not ruled out other ETFs, including those based on already existing cryptocurrencies, such as Ethereum. The company recently filed for an Ethereum ETF, highlighting its focus on digital asset products that align with its investment approach. However, BlackRock tends to favor more established assets over newer or less-backed altcoins.

Solana ETF Requires Regulatory Steps, Geraci Notes

For Geraci, a Solana ETF would require substantial regulatory steps to be launched. Specifically, CME-traded futures contracts for Solana would need to be created to enable a Solana-based futures ETF. The scenario, as he describes it, is that only if and when the three steps above are completed can a spot ETF for SOL be considered.

This requirement underscores the challenges in launching new ETF products in cryptocurrency. It is a段階的なプロセス that involves legal requirements and market readiness, both of which can take time to develop. Geraci’s comments suggest that the themes above are still lacking, making a Solana ETF unlikely in the near term.

SOL ETF Approvals Possible Early 2025

The market is now keeping an eye on two existing filings from 21Shares and VanEck. Each firm has its recommendations before the SEC, with a decision expected in March of next year. Based on this timeline, these filings could lead to approvals in early 2025, which would impact the market perception.

The SEC’s decisions on these filings will be crucial in building the foundation for the cryptocurrency ETF market. If these ETFs are approved, they could present new opportunities for investors in Solana. The market will continue to follow the developments closely.