As the competition heats up for the next altcoin exchange-traded fund (ETF), BlackRock has remained noticeably absent from the race for a Solana (SOL) ETF.
BlackRock’s iShares brand currently leads the market with the two largest spot crypto ETFs: the iShares Bitcoin Trust ETF with $55.4 billion in assets under management (AUM) and the iShares Ethereum Trust ETF with $3.7 billion AUM.
Despite this dominance, the world’s largest asset manager with $11.6 trillion in assets has yet to signal any intent to launch a Solana-based product.
Franklin Templeton Joins Race for Solana ETF as Competition Heats Up
It is worth noting that competitors are moving swiftly with their Solana ETFs.
Investment giant Franklin Templeton recently filed for a Solana ETF, joining a growing list of applicants that includes Bitwise, Grayscale, and 21Shares.
When asked on Bloomberg TV about BlackRock’s potential involvement, Rachel Aguirre, head of BlackRock’s US iShares Product division, offered no direct answers.
Instead, she emphasized the company’s consistent focus on three guiding principles.
“First, we consider what the client needs,” Aguirre said.
“Second, we evaluate the investment thesis, recognizing that not all cryptocurrencies are the same. Third, we assess whether the asset is suitable for an ETF wrapper, factoring in liquidity, transparency, and overall market viability.”
Aguirre noted that these principles apply to all of BlackRock’s strategies, whether actively managed, derivatives-based, or crypto-related.
While spot Bitcoin ETFs launched in January 2024 and spot Ethereum ETFs followed in July 2024, the path for a Solana ETF remains uncertain.
Institutional interest in Ethereum ETFs surged to 14.5% last quarter, while Bitcoin ETF ownership dipped slightly from 22.3% to 21.5%.
BlackRock’s iShares Bitcoin Trust (IBIT) continues to lead the Bitcoin ETF market, with roughly 1,100 institutions holding 247 million shares.
Regulatory hurdles could significantly impact the timeline for a Solana ETF.
Despite these challenges, Bloomberg ETF analysts estimate a 70% chance of Solana ETFs gaining SEC approval.
Solana Drops Nearly 20% Amid Token Unlock Fears and Market Pressure
On February 25, Solana experienced a sharp decline, dropping below $140 and falling to $135.
The cryptocurrency lost nearly 20% in under 24 hours, after reaching close to $170 the previous night.
Analysts attribute the sell-off to several factors, most notably the upcoming token unlock on March 1, which will release approximately 11.2 million SOL tokens.
This event, tied to the FTX bankruptcy proceedings, is expected to increase selling pressure.
Smaller token releases are also scheduled for April 1 (12,700 SOL) and May 1 (73,700 SOL), raising concerns of further price dilution.
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