Analysts warn of ‘unfair advantage’ if asset giant joins late in the Solana ETF race
Industry experts are raising concerns about the possibility of BlackRock entering the race for a Solana (SOL) exchange-traded fund (ETF) at the last moment, potentially launching alongside issuers who have been navigating regulatory processes for months.
ETF specialist James Seyffart argues that such a move would give the world’s largest asset manager an unearned advantage. “These smaller issuers have spent months working with the SEC, perfecting their filings and addressing every technical detail. Allowing a late entry to go live at the same time just isn’t right,” he said during a discussion with ETF analyst Nate Geraci.
The first U.S. application for a spot Solana ETF was submitted by VanEck in June 2024. Since then, firms such as Bitwise, Grayscale, Invesco, 21Shares, CoinShares, Canary Capital, Franklin Templeton, and Fidelity Investments have joined the queue. These companies have faced multiple SEC delays and have been required to provide amended documentation for greater regulatory clarity.
Seyffart warns that if BlackRock waits until approval is near and then files, it could capitalize on demand without enduring the same process. Geraci suggests that the firm may be watching the market and could move forward only if interest in Solana ETFs proves strong.
Limited downside for BlackRock
If BlackRock chooses not to participate, Seyffart says the impact would be minimal, noting that Bitcoin and Ethereum account for about 90% of the total cryptocurrency market cap. “Even without Solana, they would still dominate through Bitcoin and Ethereum ETFs,” he explained.
However, Seyffart also remains optimistic about investor appetite for broader crypto index products, hinting that Solana could still attract significant demand if approved.
The debate underscores a broader issue in the ETF industry — whether large institutions should have the same launch privileges as smaller firms that have invested heavily in early filings. As the SEC continues its review, all eyes remain on whether BlackRock will make a late move or sit out entirely.
Disclaimer
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