BlackRock Crypto Chief Dismisses Possibility Of Solana, XRP ETF Approval
Highlights
- BlackRock's Mitchnick cites a lack of maturity and liquidity for other altcoins to transform into an ETF.
- He also pointed out at the regulatory concerns and SEC unwillingness to accommodate more such products.
- Nate Geraci disagreed to Mitchnick stating that Europe already has several crypto ETPs running successfully.
During the inaugural day of the Bitcoin Conference 2024, BlackRock Head of Digital Assets Robert Mitchnick dampened expectations for future crypto ETFs, including Solana and XRP. This contrasts with the views of several crypto experts who believe that the approval of the spot Ether ETF would pave the way for more altcoin ETFs.
BlackRock Crypto Chief Is Negative on More Crypto ETFs
Robert Mitchnick, who leads the digital assets division of BlackRock stated that chances of exchange-traded-funds (ETFs) that track other crypto assets like Solana’s SOL, Ripple’s XRP, etc are low. He further explained his rationale during his interview with Bloomberg’s James Seyffart at the Bitcoin Conference. Mitchnick said:
“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.”
However, he makes it clear that crypto as an asset class is not going anywhere and that more financial firms will get an opportunity to compete in the crypto space. On the other hand, its competitors like VanEck have already made the first move towards Solana ETFs.
On the other hand, the spot Ether ETFs have been having a dull start after launch. These products have recorded two consecutive days of outflows with Grayscale’s ETHE bleeding heaving. Besides, BlackRock is holding the other hand trying to keep the inflows coming.
Mitchnick added that despite the lack of clarity on crypto regulations from the U.S. Securities and Exchange Commission (SEC), the regulator still wants to draw the line somewhere. He pointed out that the SEC wasn’t comfortable with spot Ether ETFs offering a staking facility.
Also Read: BlackRock Ethereum ETF Wallet Gets 76,669 ETH From Coinbase
Nate Greaci Rejects Mitchnick’s Views
ETH Store President Nate Geraci stated that he completely disagrees with Mitchnick’s views. Geraci pointed out Europe where ETPs for altcoins like Solana, XRP, and Cardano, are already there in the market. “Only need to look over to Europe to see SOL, XRP, ADA, etc. ETPs. Surprised BlackRock would say this,” he added.
Commenting on the regulatory front, Geraci stated that the introduction of similar products in the US would certainly require regulatory changes, however, he continues to be optimistic on that front.
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