BlackRock Holds Back on Solana ETF as Regulatory Uncertainty Looms

Solana ETF filings have surged in recent days, with several major firms submitting applications for a spot Solana ETF. However, BlackRock, the world's largest asset manager, has remained on the sidelines, sparking speculation about its broader strategy regarding alternative crypto assets.

BlackRock's silence on the matter has fueled speculation about its broader strategy regarding alternative crypto assets. The firm's iShares brand already controls the two largest spot cryptocurrency ETFs in the market: the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). Both funds have seen strong institutional adoption, with BlackRock's IBIT leading the charge in Bitcoin ETFs.

Rachel Aguirre, Head of US iShares Product at BlackRock, addressed the firm's ETF strategy in an interview with Bloomberg TV but stopped short of confirming any plans to launch a Solana ETF. Instead, she reiterated that BlackRock follows a strict three-principle approach when considering new investment products: client demand, investment thesis, and suitability for an ETF wrapper. This cautious and methodical approach suggests that while BlackRock may not be ruling out a Solana ETF, it is in no rush to launch one unless the conditions align with its stringent evaluation criteria.

One of the most significant hurdles facing Solana ETFs is regulatory uncertainty. The US Securities and Exchange Commission (SEC) has yet to formally clarify Solana’s classification. If the SEC deems SOL a security, it could dramatically complicate the ETF approval process. The classification would shift Solana ETFs into a different regulatory framework, requiring a more rigorous review process compared to Bitcoin (BTC) and Ethereum (ETH) ETFs, both of which operate under commodity-based investment structures.

Earlier this year, SEC Chair Gary Gensler emphasized that while Bitcoin has been largely accepted as a commodity, Ethereum's status remains in flux—and the same uncertainty applies to Solana. Given that Solana was specifically named in the SEC’s lawsuits against Binance and Coinbase as an example of an unregistered security, it remains to be seen how the regulatory body will approach ETF applications tied to SOL.

According to Bloomberg ETF analysts, Solana ETF approval currently sits at a 70% likelihood, meaning that while optimism exists, there are