BlackRock Weighs Solana ETF—Why It Might Not Be Bullish for SOL

• BlackRock’s cautious approach signals that Solana still lacks the institutional maturity and liquidity required for ETF approval, which may impact investor confidence.
• Despite BlackRock’s hesitation, other firms like VanEck continue pushing for a Solana ETF, though regulatory and market challenges remain.

Following expert predictions that CNF previously reported this February—suggesting Solana could reach $1,800 in the next cycle—recent developments indicate that BlackRock, the world’s largest asset manager with $11.6 trillion in assets under management, has addressed the possibility of launching a Solana (SOL) exchange-traded fund (ETF).

However, despite the success of its Bitcoin and Ethereum ETFs, BlackRock has indicated that a Solana ETF is not imminent. During a Bloomberg interview, Samara Cohen, BlackRock’s Chief Investment Officer for ETF and Index Investments, stated that the company evaluates potential ETFs based on investability and client demand.

We really look at the investability—what meets the criteria, what meets the bar to be delivered in an ETF.

She further noted that while Bitcoin and Ethereum meet these criteria, Solana does not currently qualify. Cohen emphasized that it would likely be some time before other cryptocurrencies are considered for ETFs. Furthermore, back in 2024, BlackRock’s CIO Samara Cohen dismissed rumors that the company was considering a Solana ETF, according to a CNF report.

In a similar tone, Robert Mitchnick, BlackRock’s Head of Digital Assets, echoed this sentiment at the Bitcoin 2024 conference, highlighting that only about 3% of the crypto market’s total capitalization comprises the next plausible investable assets. He pointed out that these assets lack the maturity and liquidity that Bitcoin and Ethereum possess, making them less suitable for ETF inclusion at this time.

Implications for Solana and the Broader Market

BlackRock’s cautious stance suggests that while Solana has shown significant growth, it has not yet achieved the stability and market presence needed for ETF consideration by major asset managers. This stance could influence investor perception, potentially leading to increased volatility in SOL’s price.

However, other financial institutions are exploring opportunities in this space. VanEck, for example, has filed for a Solana spot ETF, arguing that SOL functions similarly to Bitcoin and Ethereum as a digital commodity. Despite these efforts, the absence of a futures market for Solana and ongoing regulatory uncertainties pose challenges to the approval and success of such ETFs.

Current Solana Price Overview

The cryptocurrency has experienced fluctuations, with an intraday high and low yet to be determined. Investors are advised to monitor market developments and regulatory news closely, as these factors can significantly impact SOL’s performance.

At the time of writing, Solana (SOL) is trading at $135.03, down 2.09% in the past day and 20.87% in the past week. See SOL price chart below.