Solana and XRP ETF Potential Approval Under Threat, Here’s Reason

As the broader cryptocurrency community continues to celebrate the commencement of trading for spot Ethereum (ETF), hopes for the possible launch of related launches for altcoins ETF seem unlikely. This fear looms despite initial filing for a Solana-based ETF by VanEck and 21Shares. 

BlackRock’s reluctance to embrace altcoins

Per a report, a major asset manager, the multi-trillion dollar investment giant BlackRock, is reluctant to embrace other altcoins. According to Robert Mitchnick, Blackrock’s Digital Assets Head, “Blackrock sees “very little interest” in crypto beyond Bitcoin and Ethereum.”

This revelation could significantly impact the likely approval of the applications already filed seeking the regulator’s nod for these ETF products. Notably, BlackRock wields a huge amount of influence in the financial world and now, the cryptocurrency ecosystem. There are assumptions that its filing for Bitcoin and Ethereum ETFs facilitated the regulatory nod.

Lack of interest from this major asset manager in the crypto space threatens the approval of other altcoin ETFs. The rigors of getting regulatory approval and scrutiny by the U.S. SEC cannot be considered a walk in the park.

Ripple’s CEO Brad Garlinghouse, while commenting on an earlier delay for spot Ethereum ETF approval in an interview, joked about how the SEC had to be “dragged kicking and screaming”  to approve the spot Bitcoin ETF. However, he seemed optimistic that XRP ETF approval remains inevitable.

Without BlackRock, how will others fare?

However, the recent update about BlackRock’s stance with these other altcoins shows that not much pressure will prevail on the regulatory body. In fact, with this uncertainty, stakeholders remain unclear as to how other asset managers will respond.

As reported by U.Today, Franklin Templeton asset manager and Japan’s SBI Holdings looks set to partner for an anticipated ETF launch in Japan, where spot Bitcoin and Ether ETF products have already been introduced. The move is believed to be in preparation for an XRP and Solana ETF.

Franklin Templeton has not indicated interest in replicating this in the U.S.

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Godfrey Benjamin