According to ETF analyst James Seyffart, BlackRock, the world’s largest asset manager, should not be allowed to launch a Solana Exchange-Traded Fund (ETF) at the same time as a US-based publisher who has already filed one.
“That’s a mess,” Seyfert told ETF analyst Nate Geraci in a video released on YouTube on Saturday, discussing a hypothetical scenario that jumps in a Sot Solana (Sol) ETF and fires alongside companies that were applied months ago, despite BlackRock’s not submitting to date.
Small businesses put all their efforts into it, says Seyffart
“That shouldn’t happen,” Sefert said. “These small publishers, these guys spent a lot of time working with the SEC to get the paperwork done right,” he added.
Vanek was the first US company to apply for the Spot Solana ETF in June 2024. Other Solana ETF bidders include Bitwise, Grayscale, Invesco, 21 shares, Coinshare, Canary Capital, Franklin Templeton and faithful investments.
Since its initial submission, the SEC has issued some delays in its approval decision and requested an amended application to increase legal clarity for the proposed product.
James Seyfert spoke with Nate Gelach on Crypto Prime on Saturday. sauce: Crypto Prime
However, Seyffart is leaning towards the view that BlackRock will instead launch a crypto index product that tracks spot prices for several cryptocurrencies beyond the two biggest Bitcoin (BTC) and ether (ETH).
BlackRock may plummet if demand is high
“That’s what I would do if I were BlackRock,” Sefert said.
Novadius president Nate Geraci said BlackRock could be waiting for competitors to launch other crypto products first to measure market demand. “If demand looks really good, then maybe they can just dive,” he said.
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Geraci also said that if BlackRock chooses not to submit, it could “call in the market that it’s Bitcoin and ETH and nothing else.”
However, Seyffart says that there is no major risk to BlackRock if they don’t submit to another Crypto ETF, as around 90% of the crypto market capitalization is in Bitcoin and Ethereum. “Even if it wasn’t, I don’t think it was such a big mistake,” he said.
“It’s obviously what it is, and not for Bitcoin. Like I said, I’m pretty bullish about the demand for indexed products,” Seifert said.
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