An ETF analyst, Nate Geraci, has questioned the possibility of BlackRock launching a Solana ETF. Geraci added that BlackRock will only contemplate a spot ETF for Solana if combined with CME-traded futures and a futures-based ETF.
As a result of this analysis, one can refer to the recent statements made by the BlackRock representatives, who recently declined the idea of launching altcoin ETFs.
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. Cohen, the firm’s Chief Information Officer, pointed to this issue directly and explained that at the moment, the firm does not observe the market need for them.
On the other hand, BlackRock has not rejected other ETFs, including those based on already existing cryptocurrencies, such as Ethereum. The company recently opened an Ethereum ETF, demonstrating its focus on digital asset products that align with its investment approach. Nevertheless, BlackRock pays attention to more developed assets than new ones or less backed-up altcoins.
Solana ETF Needs Regulatory Steps, Says Geraci
In Geraci’s view, launching a Solana ETF would require significant regulatory advancements. Thus, CME-traded futures contracts for Solana should be created to open the door for the Solana-based futures ETF. This is the scenario; only if and when the above three steps are accomplished can a spot ETF for SOL be contemplated.
This requirement implies the difficulties of launching new ETF products in cryptocurrency. It is a step-by-step process that includes the legal requirements and the market preparedness, and these two can take some time to complete. Geraci’s observations indicate that the above themes are still lacking; thus, a Solana ETF is likely far from reality.
SOL ETF Approvals Could Come Early 2025
The market is waiting to see what happens to two existing filings from 21Shares and VanEck. Each firm has sent its recommendations to the SEC, and a ruling is expected in March of the following year. As per this timeline, these filings are expected to be approved in early 2025, which affects the market perception.
The SEC’s decisions on these filings will be essential for building the basis in the cryptocurrency ETF market. If these ETFs get the green light, they could present new opportunities for investors in Solana. The market is still uncertain about Solana-related investment products’ future prospects.
