ETFs have been a big buzzword and a massive contributor to the progress of the cryptocurrency markets in 2024 due to the recent approval and inflows of the Bitcoin Spot ETFs. Previously in May, the Ethereum ETFs were approved by the US Securities and Exchange Commisions and are expected to launch on July 4 2024. Bitcoin’s ETF has proven to be a massive success while the Ethereum ETFs are anticipated to do the same, Solana is looking to be a part of the crypto ETF race soon.

Recently, VanEck and 21Shares has filed for a Solana ETF to the US SEC. It is too early to speculate on whether it will be successful or not, but other institutions may give interest into filing a SOL ETF as well.

What is an ETF?

In simple terms, an exchange traded fund is an investment product that allows investors to have exposure to a certain asset class to either outperform or match the asset’s performance with a custodian. ETFs grant investors a safe way to be exposed to risk-on asset classes such as cryptocurrency with minimal risk in exchange for a premium.

Will BlackRock ever file a SOL ETF?

There has been no recent news or indicators that BlackRock will be filing for a Solana ETF. However, the historical context of ETFs may hint to BlackRock following the footsteps of VanEck and 21Shares. Previously, VanEck filed for a Spot Bitcoin ETF in June 2018, years ahead of BlackRock’s initial filing of their Spot Bitcoin ETF $IBIT in June 2023.

If BlackRock follows the trend of other large institutions applying for a crypto-related ETF, the $9 trillion asset manager would then have exposure to one of crypto’s most adopted networks. The impact of an approved BlackRock Solana ETF would allow for massive inflows for the $70 billion market cap Solana.

While speculation remains regarding BlackRock’s application for a Solana ETF, it is important to understand the political landscape and financial feasibility of a Solana ETF. The US SEC has claimed 12 tokens, Solana included, are unregistered securities while the Solana Foundation firmly refutes this claim. If Solana is declared as a commodity by SEC, not only the chances of a Solana ETF will be increased but also its impending approval.