• BlackRock’s digital asset head, Robert Mitchnick, signals no immediate plans for a Solana ETF
• The decision stems from concerns over the market’s maturity
• Solana’s recent outages and network issues likely contributed to BlackRock’s hesitation
BlackRock’s digital asset head, Robert Mitchnick, recently signaled that the asset management giant has no immediate plans to file for a Solana exchange-traded fund (ETF). Mitchnick cited concerns around the relative immaturity of the market as the primary reason behind the decision.
BlackRock’s Stance
Mitchnick outlined BlackRock‘s stance on crypto ETFs during an interview at the Piper Sandler Global Exchange conference last week. He suggested that the company would wait until the crypto market evolves further before diving into Solana ETFs.
“I think there are challenges today with respect to the size of the asset class relative to the underlying spot market,” Mitchnick stated. He added that the firm aims to ensure its products work efficiently through all market conditions before launching them.
Market Response
The crypto market responded bearishly to Mitchnick’s comments. Solana’s SOL token dropped around 7% following the interview. The broader crypto market also declined, with Bitcoin and Ethereum falling 3-4%.
Many crypto investors hoped BlackRock would aggressively expand its crypto offerings. The asset manager’s hesitance around Solana ETFs appears to have dampened some of that enthusiasm.
Looking Ahead
While BlackRock is pumping the brakes on Solana ETFs for now, Mitchnick reiterated the firm’s long-term interest in the crypto space.
“We are still very focused on this,” he said regarding crypto and blockchain technology. “We see it as a huge potential market opportunity.”
So while Solana investors may need to wait a bit longer, BlackRock still seems committed to making a bigger splash in crypto when the time is right. Its sheer size and reach mean its eventual entry could significantly impact the nascent asset class.
