After the launch of spot ETH-ETFs, you should not expect the launch of exchange-traded funds based on other altcoins. This was stated by the head of the digital assets department at BlackRock, Robert Mitchnik, writes The Block.
"I don't think we'll see a long list of cryptocurrency ETFs. Bitcoin accounts for ~55% of the market capitalization. Ethereum is 18%. The next asset suitable for investment forms about 3%. He simply does not approach this threshold and does not have such experience, maturity, liquidity, etc.," the top manager explained.
The expert acknowledged that it is becoming "increasingly obvious" that cryptocurrencies as an asset class "will not disappear." In the future, companies like BlackRock may have additional opportunities to further participate in the market, he added.
"We do not consider Bitcoin and Ethereum as competitors. The former is trying to become a global monetary alternative, a potential global payment system, while the latter is better viewed as a technological platform for creating new applications. So in fact, they complement each other rather than replace each other," said Mitchnik.
The top manager explained that in the absence of "full regulatory clarity," the SEC has clearly indicated where the line "runs." In particular, the Commission will not approve spot ETH ETFs with a staking option.
Unique characteristics of the BTC-ETF
The representative of BlackRock noted a fundamentally different value proposition of bitcoin in comparison with other types of assets. According to him, all categories of clients are showing growing interest, allocating 2-3% of their funds.
Mitchnik also noted the attention to BTC-ETFs from investment advisers and institutions, although this is still "the beginning of a trend."
"There has been a shift where people are looking at bitcoin as a potential analogue of a 'safe place,'" he said.
According to the top manager, the definition of the first cryptocurrency as a "risky asset" is "fundamentally inaccurate" and "largely useless" if digital gold is considered in the long term.
"This perception is associated with uncertainty about the future adoption, regulation, and development of a still-early ecosystem. It is very different from banking crises, geopolitical unrest, inflation, deficits, debt, currency depreciation — all those fears and risk factors that exist in the TradFi world," the expert concluded.
SOL-ETF Benchmarks
In a comment for ForkLog, the co-founder Allbridge.io Andrey Veliky stated that the successful launch of the ETH-ETF creates a precedent and increases the legitimacy of cryptocurrency exchange products based on altcoins. This increases the likelihood of approving instruments based on other assets like Solana.
The interest of institutions in various cryptocurrencies may stimulate the emergence of new strategies, such as index funds. This will allow investors to diversify portfolios and will be a big boost for the industry, the expert added.
On July 8, Cboe BZX filed Form 19b-4 for the 21Shares Core Solana ETF and VanEck Solana Trust.
According to the rules, the agency has 240 days to decide whether or not to approve the rule changes necessary to include VanEck and 21Shares products in the platform listing.
According to Bloomberg analyst Eric Balchunas, the SEC may register the instrument in mid-March 2025. The key in this regard will be the outcome of the US presidential election in November.
Earlier, Matthew Siegel, head of the digital Asset research department at VanEck, came to similar conclusions.
Prior to that, Daniel Yang, co-founder of Matrixport, expressed an opinion about the possibility of cryptocurrencies becoming the base for the next ETF. Jeffrey Kendrick, head of research at Standard Chartered, also predicted the appearance of the instrument on SOL in 2025.
A similar point of view is shared by Ripple CEO Brad Garlinghouse and Galaxy Digital CEO Mike Novogratz.
Recall that in June, the 3iQ digital asset manager applied for registration of Canada's first Solana-ETF with the option of receiving remuneration from staking (6-8% per annum).
Earlier, market maker GSR positively assessed the growth potential of SOL in the event of an ETF launch. According to analysts, the cryptocurrency may rise in price by 1.4–8.9 times.
https://forklog.com/cryptorium/chto-takoe-solana