Robert Mitchnick – BlackRock’s director of digital assets – doubts the Solana ETF or XRP ETF.
Then, you can get started. Bitcoin Conference 2024Mitchnick’s words ignited debate within the crypto-community, challenging recent hopes that followed the approval of Bitcoin and Ethereum ETFs.
BlackRock’s view on Solana ETFs, XRP and SEC rules: market effects and SEC regulations
Robert Mitchnick on Altcoin Exchange Traded Funds
Mitchnick believes that altcoins, such as Solana or XRP, lack maturity and liquidity required for ETFs. He emphasized the dominance that Bitcoin and Ethereum have on the markets.
“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%.”
The gap between market shares is seen by many as an obstacle for future altcoin exchange-traded funds.
Mitchnick also believes that regulatory concerns are a major factor. Mitchnick cites the SEC’s refusal to approve more crypto products as an obstacle. He also notes that regulators are uncomfortable with features such as Ethereum ETFs’ staking.
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Different views and market reactions
BlackRock is not the only crypto investor who disagrees. Nate Geraci is the ETH Store president and he openly questions Mitchnicks’ views. He points out that there are altcoin ETPs available in Europe.
Geraci states:
“Only need to look over to Europe to see SOL, XRP, ADA, etc. ETPs. Surprised BlackRock would say this.”
Franklin Templeton Digital Assets recently tweeted a positive outlook, which contradicts BlackRock’s pessimism.
Crypto Market Effects
Different opinions about Solana ETF and XRP ETF have influenced market dynamics. Solana is still able to hold its own despite the uncertainties. It has added nearly 5% in gains, and reached $179. Bitcoin remains above $67,000 while Ethereum is hovering above $3,200.
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What are the regulatory landscape and future outlook?
Crypto ETFs are a key part of how the SEC will handle the crypto industry. The SEC has approved Bitcoin and Ethereum ETFs, but the road for other altcoins ETFs is more difficult.
Geraci is optimistic about regulatory change and believes that altcoin ETFs could be introduced in the US with the right regulatory adjustment.
Investor Interest and Market Dynamics
Mitchnick says that the main focus of client interest is Bitcoin and Ethereum. He observes:
“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.”
BlackRock ETFs for Bitcoin and Ethereum have had a strong start to the year.
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Different views are shaping the crypto market’s future. BlackRock may be cautious when it comes to the Solana ETFs and XRP ETFs, but other experts don’t agree, indicating there is still a debate.
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Source: watcher.guru