According to BlackRock’s senior exchange-traded fund executive, Bitcoin and Ethereum will soon be the only cryptocurrencies traded in ETFs.
In an interview with Bloomberg TV, July 29, Samara Cohen, BlackRock’s Chief Investment Officer for ETFs and Index Investments, confirmed that the firm does not plan to pursue any additional crypto ETFs, including a spot Solana ETF, in the near term.
BlackRock’s Stance on Solana ETF
Bitcoin accounts for 55% of the total crypto market, with Ethereum holding a 17% share. The remaining altcoins contribute less than 10% each, which raises liquidity and manipulation concerns for introducing other crypto ETFs like the Solana ETF.
Cohen explained that while Bitcoin and Ethereum meet BlackRock’s minimum expectations for ETFs, no other digital asset currently meets those standards.
Cohen noted that, beyond technical difficulties in bringing new ETFs to market, there is no significant demand for other currency ETFs, particularly Solana. Cohen emphasized that for BlackRock, both in terms of investability and client interest, Bitcoin and Ethereum meet the necessary criteria, but it will take time before other cryptocurrencies reach this bar.
BlackRock’s Digital Assets Head
Cohen’s remarks mirror the stance of BlackRock’s Head of Digital Assets, Robert Mitchnick, who stated at a recent Bitcoin conference that there is no immediate scope for new crypto ETFs. Despite the successful launch of Ethereum ETFs last week, which saw crypto funds’ weekly trading volume reach its highest level since May, at over $14.8 billion, there is still caution about future ETFs.
Solana has been considered a likely candidate for an ETF, with filings from VanEck and 21Shares. Many investors are bullish on Solana due to its reputation as a faster and cheaper alternative to Ethereum. However, the absence of Solana CME futures, unlike Bitcoin and Ethereum, presents a major issue for SEC approval.
Franklin Templeton has described Solana as an “exciting and major development” that could advance the crypto space, yet Solana only represents around 3% of the overall crypto market.
Crypto ETFs in Model Portfolios
Cohen also stated that crypto ETFs are expected to be included in “Model Portfolios” by the end of 2024. This announcement came in response to questions about the position of major fund houses like Wells Fargo, Morgan Stanley, and UBS on adopting and promoting crypto ETFs. She added that these institutions are conducting due diligence and risk analysis while considering the role of Bitcoin and Ethereum in their portfolios.
Final Words
With the buzz around crypto ETFs, one can expect that more cryptocurrencies will have their ETFs. Sadly, BlackRock does not see this happening.
Frequently Asked Questions
What is BlackRock company known for?
BlackRock is known for investment, risk management, etc.
Who is the CEO of BlackRock?
Laurence D. Fink is the CEO of BlackRock.
What companies does BlackRock have Stakes in?
Some of the companies BlackRock has investments in include Apple, Microsoft, etc.
Who Controls Blackrock
It is mostly owned by institutional investors.
How much is BlackRock worth in a trillion?
As of the 2024 first quarter, BlackRock has total assets under management worth 10.5 trillion dollars.
Who is the Biggest Investor in BlackRock?
BlackRock’s largest shareholders include Bank of America, Vanguard Group, Temasek Holdings, and BlackRock itself.
Can I invest in BlackRock?
Yes, you can.
