Rachel Aguirre from BlackRock outlined key principles the company employs when considering the launch of a Solana ETF, focusing on client needs, investment thesis, and Solana's suitability for ETF structuring.
BlackRock's Three Key Principles
Rachel Aguirre, head of U.S. iShares products, emphasized BlackRock's adherence to three core principles when evaluating the viability of launching a Solana ETF: addressing client needs, clearly defining the investment thesis, and assessing Solana's suitability for ETF packaging. She also highlighted liquidity, transparency, and support for active management as top priorities.
Regulatory Challenges for Solana ETF
Regulatory uncertainty remains a potential hurdle for Solana ETFs, as the SEC is likely to classify SOL as a security, differing from the classification of Bitcoin and Ethereum as commodities. Bloomberg analysts James Seyffart and Eric Balchunas recently pointed out a 70% likelihood of Solana ETFs being approved. However, Solana's security status could complicate the ETF application process.
Market Prospects and Expectations
Among many optimistic market participants, such as Canary Capital’s Steven McClurg, there are expectations that Solana ETFs will gain approval by the end of the year. Vivian Fang, a finance professor at Indiana University, highlighted that the U.S. classification of Solana will significantly impact how quickly an ETF can be launched.
The launch of a Solana ETF could open up new investment opportunities; however, significant regulatory hurdles still remain in the path to approval.
