Bitcoin and Ethereum Identified as Top Choices for ETFs in the Coming Months
Bitcoin and Ethereum are poised to dominate the world of cryptocurrency exchange-traded funds (ETFs) in the near future, as indicated by Samara Cohen, Chief Investment Officer for ETF and Index Investments at BlackRock, the largest asset manager globally.
In a recent interview with Bloomberg TV, Cohen elaborated on BlackRock’s rigorous ETF selection process, emphasizing that Bitcoin and Ethereum currently stand out as the only digital assets meeting the stringent criteria for inclusion. “We really look at the investability to see what meets the criteria, what meets the bar to be delivered in an ETF,” Cohen explained. “Both in terms of investability and also what we hear from our clients, Bitcoin and Ethereum definitely meet that bar, but it will be a while before we see anything else.”
Cohen underscored that while technical obstacles hinder the launch of new ETFs, the demand for alternative cryptocurrency ETFs, notably Solana, remains insufficient at present. Despite Solana being considered a potential candidate for an ETF, Cohen noted that the market interest is not currently substantial enough to support such a move.
BlackRock’s recent emphasis on Bitcoin and Ethereum ETFs follows the successful introduction of Ethereum ETFs last week, resulting in a significant surge in weekly trading volume for crypto funds to $14.8 billion, marking the highest level since May. This success has sparked discussions about potential future ETFs, with Solana frequently mentioned as a contender.
Solana, recognized for its speed and cost-effectiveness compared to Ethereum, has seen two separate ETF filings in the U.S. by VanEck and 21Shares. However, the absence of Solana CME futures, a feature present for Bitcoin and Ethereum, poses a notable obstacle to the SEC’s approval of a Solana ETF.
Despite the challenges, some fund managers maintain an optimistic outlook on Solana’s potential. Franklin Templeton recently characterized Solana as an “exciting and major development that we believe will drive the crypto space forward.” Presently, Solana represents approximately 3% of the total crypto market value, with a market capitalization of $82 billion, based on CoinGecko data.
Meanwhile, investors in Bitcoin continue to demonstrate robust support, exemplified by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT recorded inflows of $526.7 million, the highest single-day total since March. This notable achievement contrasts sharply with the combined inflow of just $6.9 million observed across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT’s inflows coincides with Bitcoin trading above the significant $68,000 threshold, positioning it just 8% below its all-time high of $73,000.
