BlackRock’s Robert Mitchnick, Head of Digital Assets, has tempered expectations for Solana and XRP ETFs, citing concerns over the lack of maturity and liquidity, alongside regulatory uncertainties. Today, this caution is given following the price decline of Ethereum in the aftermath of the ETF launch. Still, applications for SOL ETFs by VanEck and 21Shares demonstrate further institutional demand for such assets.
Also Read: BlackRock’s latest S-1 filing adds more details about Ethereum ETF and its business prospects
Institutional Interest and Regulation
Mitchnick questioned how much at ease the SEC is with spot Ether ETFs providing staking services, mentioning that the ETFs for the altcoins, like Solana or XRP, must be very distant. This speculative view comes based on information from Franklin Templeton (FTI) although the firm applauded Solana’s vision and ability. FTI appreciated Solana for its rich Q4 2023 operational turnovers with a focus on achievements in Decentralized Finance (DeFi), Meme coins, and NFT.
Furthermore, Solana has delivered these multiple roles, grabbing the attention of significant financial institutions. This fund is Solana-based HL, an institutional investment headquartered in Hamilton and an institutional fund manager with over $900bn assets under management, bringing out its first institutional fund. Solana has a low latency and throughput capability, so HL’s CEO described it as a good network for tokenization.
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However, the doubts that existed in the past have not disappeared entirely, even in the presence of the advancements mentioned above. Having indicated that Solana could be an unregistered security, the critics would submit that the SEC’s approval for any spot fund would only occur after legal difficulties are dealt with. However, VanEck and 21Shares have submitted applications to the listings of SOL-based exchange-traded funds, which shows that some still believe in Solana.
The Divergent Paths of Altcoins
The altcoins are still at the center of the performance since the dominant ones do not show much action. Notably, meme coin sectors with their platform on Solana have shown relatively high increases, indicating the sectors’ versatility in the cryptocurrency market. Nevertheless, the stride of Solana and other altcoins does not seem to stop despite the numerous regulatory constraints in the market.
This can be seen from the conservative tones in Mitchnick’s utterances when he cites current regulations to indicate the issue is complicated. However, active investment practices by firms like VanEck, 21Shares, and Franklin Templeton testify to the rising belief in the potential and longer span of Solana and XRP.
Also Read: Larry Fink, CEO of BlackRock, Endorses Bitcoin as a “Legitimate Financial Instrument
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.