Coinspeaker
BlackRock’s Stance on Crypto ETFs: No Solana but Potential for Ether in Model Portfolios
Blackrock CIO for ETFs and Index investment Samara Cohen has revealed that the asset management firm has no plans to offer a Solana ETF anytime soon. Cohen noted this during an interview with Bloomberg. She stated that there is little demand for crypto ETFs other than those for Bitcoin and Ethereum.
Cohen explained that Bitcoin and Ethereum have met the financial giant’s expectations, and no other crypto has attained the same level of investor interest and demand. Bitcoin, the largest cryptocurrency, makes up about 52% of the total crypto market, and Ethereum is 17%, but the other cryptocurrencies have much smaller shares. She further noted that the appetite for new ETFs isn’t there beyond the technical issues in bringing new ETFs to the market. She stated:
“We really look at the investability to see what meets the criteria and what meets the bar to be delivered in an ETF. For us, both in terms of investability and also what we hear from our clients, Bitcoin and Ethereum definitely meet that bar, but it will be a while before we see anything else.”
Samara’s comment aligns with that of BlackRock’s head of digital assets, Robert Mitchnick, who stated at the Bitcoin 2024 Conference that he does not expect a long list of crypto ETFs to come out soon.
This stand by the BlackRock officials contradicts that of Franklin Templeton, an asset management company. The firm expressed optimism about crypto ETFs and went further to state that aside from BTC and ETH, other developments could drive the industry forward. He noted that Solana has gained lots of adoption and overcome several challenges, showing the coin is part of this progress. Meanwhile, asset manager firm VanEck filed for its Solana ETF in June. Similarly, 21Shares filed for permission to offer ETFs tied to Solana.
ETFs to Be Included in Model Portfolio
In the interview, Cohen said that cryptocurrency ETFs, especially ones linked to Bitcoin and Ethereum, will probably be included in the ‘model portfolios’ that big financial firms like Morgan Stanley, Wells Fargo, and UBS offer by the end of 2024. She explained that these companies are currently studying cryptocurrency and analyzing the risks to determine the role of these digital assets in their investment strategy. She said:
“What will happen toward the end of this year and into next year is we will see allocations into model portfolios which will give us much more of a steer into how investors are using them.”
Since its launch of Ethereum ETF last week, BlackRock has been gaining the most inflow ahead of others, which shows people are increasingly interested in having a regulated way to invest in Ethereum. Despite the outflows seen in some Ether-linked products, like the Grayscale Ethereum Trust, Cohen believes this is a sign that investors really want to get their ETH exposure and are seeking access points that they have confidence in, such as the newly launched spot ETFs.
BlackRock’s Stance on Crypto ETFs: No Solana but Potential for Ether in Model Portfolios
