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The globe’s largest asset manager, BlackRock, ought not to be permitted to introduce a Solana exchange-traded fund (ETF) concurrently with the US-based entities that have already submitted applications, asserts ETF analyst James Seyffart.
“That’s improper,” Seyffart stated to ETF analyst Nate Geraci in a video released on YouTube on Saturday, contemplating a hypothetical situation where BlackRock — without any filing as of yet — enters at the last moment with a spot Solana (SOL) ETF and launches alongside firms that applied months prior.
The smaller entities invested significant effort, Seyffart expresses
“That shouldn’t take place,” Seyffart remarked. “These smaller issuers, these individuals have dedicated so much time collaborating with the SEC to ensure the documentation is accurate,” he continued.
VanEck was the initial US firm to submit a petition for a spot Solana ETF in June 2024. Other contenders for the Solana ETF include Bitwise, Grayscale, Invesco, 21Shares, CoinShares, Canary Capital, Franklin Templeton, and Fidelity Investments.
Following the initial submission, the SEC has implemented multiple delays in its approval decision and requested revised application forms to achieve greater legal clarity regarding the proposed products.
Nonetheless, Seyffart leans toward the perspective that BlackRock may instead introduce a crypto index product reflecting the current prices of various cryptocurrencies beyond the two largest, Bitcoin (BTC) and Ether (ETH).
BlackRock may step in if demand is substantial
“That’s what I would opt for if I were BlackRock,” Seyffart said.
NovaDius president Nate Geraci suggested that BlackRock might be waiting for its rivals to unveil other crypto products initially to assess market demand. “If the demand appears to be exceptionally strong, perhaps they can just swoop in,” he mentioned.
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Geraci also expressed that if BlackRock decides not to file, they might be “making a market determination that it is solely going to be Bitcoin and ETH and nothing beyond that.”
However, Seyffart indicates it’s not a significant risk for BlackRock if they refrain from filing for another crypto ETF since approximately 90% of the crypto market cap resides in Bitcoin and Ethereum. “Even if they don’t, I don’t think it is such a substantial loss,” he stated.
“It clearly is not going to be what it was for Bitcoin, and as I mentioned, I’m quite optimistic about the demand I perceive for index products,” Seyffart remarked.
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