The highly anticipated Bitcoin 2024 Conference started on July 25. Many important names of the industry, including Donald Trump, will attend this conference.
One of these names was BlackRock Digital Assets President Robert Mitchnick. Speaking to Bloomberg ETF analyst James Seyffart at the Bitcoin Conference held in Nashville, Robert Mitchnick evaluated whether there are any ETFs that can be approved other than Bitcoin and Ethereum.
Altcoins Like Solana and XRP Have No Chance of ETF Approval!
At this point, the BlackRock executive said he believes altcoins like Solana (SOL) and XRP do not have enough maturity and liquidity to launch an ETF.
SOL and XRP etc. Stating that the chances of ETF approval for altcoins such as are low, Mitchnick cited regulatory concerns and the SEC's reluctance to approve more crypto ETFs, as well as lack of maturity and liquidity, among the reasons.
“I don't think we'll see a long list of crypto ETFs.
If you consider Bitcoin in ETFs, it represents about 55% of market cap today. ETH is at 18%. The next decent investable asset is at around 3%.
Therefore, altcoins other than BTC and ETH do not have sufficient maturity and liquidity features for the ETF.”
Although Mitchnick thinks other ETFs other than BTC and ETH will not receive approval, he thinks cryptocurrencies will continue to exist, be adopted by more individuals and institutions, and more financial firms will have the opportunity to compete in the crypto space.
There are opposing views on Solana and XRP ETF!
Although the BlackRock executive thinks that ETFs other than Bitcoin and Ethereum have no chance of approval, ETF Store President Nate Geraci stated that he disagrees with Mitchnick's views.
Geraci pointed to Europe, where ETPs for altcoins such as Solana, XRP and Cardano are already on the market, and stated that he believes that similar products for XRP, SOL and ADA could be launched in the US if the appropriate regulatory environment is provided.
“One only has to look at Europe to see ETPs like SOL, XRP, ADA, etc. I am surprised BlackRock said this.”
What's Next After Bitcoin and Ethereum?
With the SEC's recent approval of Ethereum ETFs, investors and issuers have begun to consider other possible ETFs. While ETF approval for XRP currently faces some regulatory hurdles, Solana seems to have all the necessary conditions in place.
At this point, GSR stated in a recent report that research shows that Solana is the next priority candidate if additional spot crypto ETFs other than BTC and ETH are allowed in the US.
VanEck and 21Shares have already filed for a spot ETF for SOL as investors eagerly await regulatory decisions, hoping Solana and XRP will be the next cryptocurrency to benefit from an ETF.
*This is not investment advice.
