BlackRock Crypto Head Says Solana and XRP ETFs Unlikely to Be Approved

BlackRock’s Mitchnick says that other altcoins, like Solana and XRP, might not be ready for ETF approval due to issues with maturity and liquidity.

He also mentioned that regulatory concerns and the SEC’s reluctance make it difficult for more crypto ETFs to be approved. However, Nate Geraci disagrees, pointing out that Europe already has several successful crypto ETPs.

BlackRock’s Mitchnick Doubts Future for Solana and XRP ETFs

At the Bitcoin Conference 2024, BlackRock’s Head of Digital Assets, Robert Mitchnick, dampened expectations for the approval of more crypto ETFs, including those for Solana and XRP. This contrasts with the belief among some crypto experts that approving a spot Ether ETF could pave the way for more altcoin ETFs in the future.

Mitchnick, leading BlackRock’s digital assets division, expressed skepticism about the likelihood of ETFs tracking other crypto assets such as Solana (SOL) and Ripple (XRP). In an interview with Bloomberg’s James Seyffart, he explained, “I don’t think we’re going to see a long list of crypto ETFs. If you think of Bitcoin, today it represents about 55% of the market cap. ETH is at 18%. The next plausible investible asset is at, like, 3%. It’s just not close to being at that threshold or track record of maturity, liquidity, et cetera.”

Despite his cautious stance on specific altcoin ETFs, Mitchnick assured that the crypto asset class is here to stay and more financial firms will have opportunities to enter the space. Meanwhile, competitors like VanEck have already started pursuing Solana ETFs.

On a related note, spot Ether ETFs have struggled since their launch, experiencing consecutive days of outflows, with Grayscale’s ETHE seeing significant losses. BlackRock is working to maintain positive inflows despite the challenges.

Mitchnick also highlighted the regulatory uncertainty surrounding crypto assets, noting that the U.S. Securities and Exchange Commission (SEC) is hesitant to approve spot Ether ETFs that offer staking facilities.

Nate Geraci Disagrees with Mitchnick on Future of Crypto ETFs

ETH Store President Nate Geraci strongly disagrees with Robert Mitchnick’s views on the future of crypto ETFs. Geraci emphasized that Europe already has exchange-traded products (ETPs) for altcoins like Solana (SOL), XRP, and Cardano (ADA). “Only need to look over to Europe to see SOL, XRP, ADA, etc. ETPs. Surprised BlackRock would say this,” he remarked.

Regarding regulatory issues, Geraci acknowledged that introducing similar products in the U.S. would require regulatory changes. However, he remains optimistic about the potential for progress in this area.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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