CIO Samara Cohen cites Solana's lack of maturity and client demand; other asset managers like VanEck show interest.
BlackRock, one of the world's largest asset management firms, has confirmed that it will not be launching a Solana (SOL) Exchange-Traded Fund (ETF) in the near future. This decision comes despite the success of its Bitcoin and Ethereum spot ETFs.
According to BlackRock's Chief Investment Officer (CIO) Samara Cohen, Solana currently lacks the maturity compared to more established cryptocurrencies like Bitcoin and Ethereum. Cohen explained that Solana does not meet the criteria for investability and client demand at this time. This means that, for now, BlackRock will continue to focus on Bitcoin and Ethereum, which have proven to be more stable and widely accepted in the market.
Investability is a key factor for BlackRock when considering new ETFs. This includes evaluating the cryptocurrency's market stability, liquidity, and overall demand from clients. Bitcoin and Ethereum have consistently met these criteria, making them favorable options for ETFs. On the other hand, smaller-cap altcoins like Solana still need to demonstrate these qualities to be considered.
While BlackRock may not be interested in launching a Solana ETF at this time, this leaves an opportunity for other asset managers. For instance, VanEck has already filed for a Solana spot ETF in the United States. This move indicates that there is still interest in Solana from other parts of the investment community, even if BlackRock is not currently on board.
For investors, the key takeaway is that while Solana may not yet be mature enough for BlackRock's standards, it is still on the radar of other asset managers. This could mean potential future opportunities for investment as Solana continues to develop and gain acceptance in the market. For now, Bitcoin and Ethereum remain the primary focus for major asset management firms like BlackRock.
