Recent discussions in the crypto community have centered around the possibility of BlackRock, the world’s largest asset manager, filing for a Spot Solana Exchange-Traded Fund (ETF). This speculation is fueled by BlackRock’s filing for a spot Bitcoin ETF in June and the recently submitted S-1 filing for a spot Ethereum ETF. However, Bloomberg analyst James Seyffart has debunked the rumors, citing regulatory hurdles.

One person who spread the rumors about a Solana ETF from BlackRock was crypto influencer LitecoinYagami. He wrote via X: “The SEC is reviewing Blackrock’s BTC ETF application. […] Blackrock believes crypto is an emerging industry […] As for Solana, before you bring out your pitchforks, consider: its partnerships, the FTX revival, network stability, and market cap feats.”

However, this speculation has been met with skepticism from industry experts, and Bloomberg ETF analyst James Seyffart succinctly debunked the rumor about a potential Solana ETF from BlackRock, stating via X, “Not any time even remotely soon IMO.”

When pressed further about the possibility of including Solana or Avalanche in ETFs, Seyffart added that there are “multiple reasons,” why a Spot Solana ETF has no real chance of being approved anytime soon. He cited Sean Tuffy, “FWIW a good rule of thumb for the current SEC regime is that if there’s not a futures contract for the cryptocurrency in question, traded on a regulated exchange, then there’s no way it’s going to be approved as an ETF.”

This statement was echoed by CF Benchmarks, a Financial Conduct Authority (FCA)-regulated crypto benchmark administrator, emphasizing the significance of a regulated futures exchange like the CME Group. They stated, “Exactly. And a ‘regulated futures exchange’ = CME Group, where all crypto contracts settle to our regulated reference rates.”

Additionally, the SEC’s recent classification of Solana as an unregistered security in its enforcement actions against Binance on June 5 adds another layer of complexity, potentially delaying any spot Solana ETF for the time being.

In a related note, Matt Hougan, CIO of Bitwise, whose company is currently fighting for a spot Bitcoin ETF approval, explained why an ETF is more crucial for Bitcoin than other cryptocurrencies, including Ethereum and by extension, Solana.

He stated: “An ETF is positive for both BTC and ETH but it means more to BTC.” Hougan elaborated on this by explaining there are two reasons for this. “1) BTC is likely to be first and suck up most of the oxygen. This is particularly true since many financial pros don’t know the difference b/t BTC and ETH. 2) Bitcoin’s killer app today is a way to store wealth outside of the fiat system. In that sense, the ETF boosts actual use. Ethereum’s killer app is its functionality, and the ETF doesn’t impact that.”

At press time, SOL traded at $58.85.

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