Solana ETF Race Heats Up as BlackRock Faces Industry Criticism

Solana ETF Applications: Why BlackRock’s Timing Could Be “Messed Up”

Solana ETF Applications – BlackRock, the world’s largest asset manager, faces criticism from industry experts over potential plans to enter the Solana ETF market at the eleventh hour, despite smaller firms having already done the heavy lifting for months.

“That’s Messed Up” – Expert Calls Out Potential BlackRock Move

ETF analyst James Seyffart didn’t mince words when discussing the possibility of BlackRock swooping into the Solana exchange-traded fund race without warning. In a YouTube video published Saturday, Seyffart expressed strong opposition to any last-minute entry by the asset management giant.

“That shouldn’t happen,” Seyffart told fellow analyst Nate Geraci, emphasizing that smaller issuers have invested significant time and resources working with the SEC to perfect their paperwork and regulatory compliance.

Small Firms Lead the Charge While BlackRock Waits

The Solana ETF application process began in June 2024 when VanEck became the first US firm to file for a spot Solana ETF. Since then, a impressive lineup of financial institutions has joined the race, including Bitwise, Grayscale, Invesco, 21Shares, CoinShares, Canary Capital, Franklin Templeton, and Fidelity Investments.

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These companies have navigated multiple SEC delays and submitted amended application forms to address regulatory concerns about their proposed products. Meanwhile, BlackRock has remained notably absent from the filing process.

BlackRock’s Alternative Strategy: Crypto Index Products

Rather than jumping into the Solana-specific market, Seyffart believes BlackRock will likely pursue a different approach. “That’s what I would do if I were BlackRock,” he said, suggesting the company may launch a crypto index product that tracks multiple cryptocurrencies beyond Bitcoin and Ethereum.

Strategic Waiting Game or Market Miscalculation?

NovaDius president Nate Geraci suggested BlackRock might be employing a wait-and-see strategy, monitoring competitor launches to gauge market demand before making their move. “If the demand looks like it’s going to be really good, perhaps they can just swoop in,” Geraci explained.

However, this approach carries risks. If BlackRock chooses not to file, Geraci noted they may be “making a market call that it is just going to be Bitcoin and ETH and nothing else.”

Low Risk, High Reward Calculation

Despite the controversy, Seyffart acknowledged that missing out on Solana ETF opportunities wouldn’t devastate BlackRock’s crypto strategy. With approximately 90% of the crypto market cap concentrated in Bitcoin and Ethereum, the company’s existing offerings already capture the majority of digital asset investment flows.

“Even if they don’t, I don’t think it is that big of a miss,” Seyffart concluded, while expressing optimism about demand for broader crypto index products in the evolving ETF landscape.