BlackRock Plans To Index Private Markets, Is Solana ETF In View?

BlackRock CEO Larry Fink has announced the firm’s plan to index the private market after the acquisition of data provider Preqin.

BlackRock to Meet Increased Private Market Demand

During a call with investors and analysts on Monday, Fink talked more about the acquisition of Preqin.

He highlighted that the plan is to bring the principles of indexing iShares to the private markets as it remains a significant part of public markets. Noteworthy, the London-based private capital database provider is widely known for its index funds. BlackRock’s deal with Preqin is valued at £2.55 billion, approximately $3.2 billion.

Larry Fink says he wants BlackRock to “index the private markets” and “bring the principles of indexing even iShares to the private markets” on call today with analysts about the Prequin deal.. via @sabrush https://t.co/FLneVshlNe pic.twitter.com/gJDPAn42v2

— Eric Balchunas (@EricBalchunas) July 1, 2024

The acquisition of Preqin aligns with the investment asset management firm’s push to become a key player in terms of alternative assets. In Fink’s opinion, indexes and data will ultimately drive “the democratization of all alternatives.” BlackRock decided to pursue this indexing of private market after discovering an increased demand amongst investors for relevant data.

“They’ve grown durable, high-growth revenue pools that are adjacent to asset management and they have generated enormous value for clients and shareholders,” BlackRock CEO said speaking of the increased demand. “Our aim is to do all of that in the far less mature data, analytics and index business for all the private markets.”

The transaction has not wrapped up  yet but is expected to close before the end of the year. It is still subject to regulatory and other necessary approvals.

Solana ETF Could be BlackRock’s Next Move

BlackRock has already delved into the private market with its foray into crypto products featuring spot Bitcoin and Ethereum ETFs. The firm filed for spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC) last year. The securities regulator approved the offering after about six months, giving BlackRock and other filers the authorization to offer the new product for trading.

Note that, BlackRock had put out its filing for spot Ethereum ETF even before the approval for Bitcoin ETFs came in January. The SEC constantly delayed its decision on the filing together with other spot Ethereum ETF applications. It was not until May 23 that BlackRock’s filing and those of from VanEck, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise were approved by the SEC. However, the offering is not up for trading for now.

Now the new potential product is a Solana ETF. VanEck and 21Shares have filed their 19b-4 applications for the offering and the other crypto ETF filers are expected to follow suit. With BlackRock’s recent talks about indexing the private market, the investment asset management firm may just be next in line for a Solana ETF.

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