BlackRock’s Crypto Chief Shuts Down Solana, XRP ETF Hopes

Solana ETF and XRP ETF hope to face a big setback as BlackRock’s head of digital assets, Robert Mitchnick, doubts their approval.

At the Bitcoin Conference 2024, Mitchnick’s words sparked debate in the crypto community, challenging the hope that followed recent Bitcoin and Ethereum ETF approvals.

BlackRock’s View on Solana and XRP ETFs: Market Effects and SEC Rules

Robert Mitchnick’s View on Altcoin ETFs

Mitchnick says that altcoins like Solana and XRP lack the needed maturity and liquidity for ETFs. He stresses the market dominance of Bitcoin and Ethereum, stating:

“If you think of Bitcoin, today it represents about 55% of the market cap. ETH is at 18%. The next possible investible asset is at, like, 3%.”

This gap in market share is seen as a big hurdle for potential altcoin ETFs.

Regulatory concerns also play a key role in Mitchnick’s view. The SEC’s unwillingness to allow more crypto products is cited as a major obstacle, with Mitchnick noting the regulator’s unease even with staking features for Ethereum ETFs.

Also Read: SEC Officially Approves Spot Ethereum ETF Trading for Tomorrow

Market Reactions and Differing Views

Not everyone in the crypto space agrees with BlackRock’s stance. Nate Geraci, ETH Store President, openly challenges Mitchnick’s views, pointing to the existence of altcoin ETPs in Europe.

Geraci states:

“Only need to look over to Europe to see SOL, XRP, ADA, etc. ETPs. Surprised BlackRock would say this.”

Further contradicting BlackRock’s pessimism, Franklin Templeton Digital Assets expressed a more hopeful outlook in a recent tweet:

Effects on the Crypto Market

The differing views on Solana ETF and XRP ETF possibilities have swayed market dynamics. Despite the uncertainty, Solana has shown resilience, adding nearly 5% gains and reaching $179. Bitcoin stays above $67,000, while Ethereum hovers above $3,200.

Also Read: Bitcoin: BlackRock Says ETFs Will Reach $4T by 2030

What is the Regulatory Landscape and Future Outlook?

How the SEC handles crypto ETFs is key to the industry’s growth. While Bitcoin and Ethereum ETFs have gained approval, the path for altcoin ETFs seems more challenging.

Geraci remains hopeful about potential regulatory changes, suggesting that the introduction of altcoin ETFs in the US is possible with regulatory adjustments.

Investor Interest and Market Dynamics

Client interest, according to Mitchnick, is mainly focused on Bitcoin and Ethereum. He notes:

“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.”

This matches the strong start of BlackRock’s Bitcoin and Ethereum ETFs this year.

Also Read: Ripple: Will XRP Rise 20% by the End of the Month?

The crypto market keeps changing as different views shape its future. While BlackRock is careful about Solana ETF and XRP ETF chances, other experts disagree, showing the debate isn’t finished.