🚀 Crypto BlackRock Casts Doubt On SEC Approval For Spot XRP, Solana, And SHIB ETFs — Here’s Why

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Despite the successful launch of spot Ethereum (ETH) exchange-traded funds (ETFs) this week, hopes for the possible advent of other altcoin ETFs seem far-fetched. This is after an executive at the world’s largest asset management firm, BlackRock, indicated that the Ether ETFs are unlikely to open the door to highly regulated funds that track the prices of other altcoins such as Solana’s SOL, Ripple’s XRP, or Shiba Inu (SHIB).

With BlackRock lacking interest in other crypto assets, the big question is, will SOL and XRP ETFs ever see the light of day?

BlackRock Sees “Very Little Interest” In Crypto ETFs Beyond BTC, ETH​

$10 trillion asset manager BlackRock is reticent to embrace altcoins beyond Ether.

BlackRock’s Head of Digital Assets Robert Mitchnick said at the Bitcoin 2024 conference on July 25 in Nashville that he doesn’t foresee many crypto exchange-traded funds (ETFs) outside of the two major digital assets, Bitcoin (BTC) and Ethereum (ETH). This is because customers of the investment firm have shown “very little” demand for other cryptos beyond BTC and ETH:

“I would say that our client base today, their interest overwhelmingly is in Bitcoin first, and then somewhat in ETH… and there’s very little interest today beyond those two,” Mitchnick posited.

“I don’t think we’re gonna see a long list of crypto ETFs,” Mitchnick added. BlackRock debuted its first crypto exchange-traded funds — iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust ETF (ETHA) — in January and July, respectively.

This disclosure could greatly impact the likely approval of the filings currently pending at the Security and Exchange Commission’s desk, including Solana-based applications from VanEck and 21shares. Notably, BlackRock is a very influential Wall Street player in Washington and now in the cryptocurrency world. Some believe that its filing for a spot Bitcoin ETF was one of the reasons why the SEC ultimately gave its regulatory blessing.

What Happens With Other Issuers With BlackRock Stepping Back?​

Not all fund managers disagree with BlackRock. ARK Invest CEO Cathie Wood in February shared her belief that the SEC is unlikely to approve spot products for any other crypto assets besides Bitcoin and Ethereum.

It’s not clear how other asset managers will react following BlackRock’s latest update on its stance on other alternative cryptocurrencies.

However, Franklin Templeton, which also issues BTC and ETH spot ETFs, remains highly optimistic about more cryptocurrency ETFs, including a Solana product.

“Besides Bitcoin and Ethereum, there are other exciting and major developments that we believe will drive the crypto space forward,” Franklin Templeton recently remarked.

Furthermore, Ripple CEO Brad Garlinghouse said earlier in May he believes the launch of XRP, SOL, and other crypto ETFs is only a matter of time.