BlackRock ETF and Index Investments CIO Samara Cohen discussed the iShares Ethereum Trust ETF (ETHA) in an interview with Bloomberg. She lauds Ethereum, like Bitcoin, for meeting investability criteria, citing customer feedback.
The investment firm issues both Bitcoin (BTC) and Ether (ETH) ETFs (exchange-traded funds) but recently dismissed prospects of a Solana counterpart, at least for the near term.
BlackRock CIO Discusses Ethereum ETFs Outflows
Cohen acknowledged the continued negative flow of Ethereum ETFs during the interview with ETF analyst Eric Balchunas. Nevertheless, she said, “This is a story in the early days about access.” Cohen underscored that Ethereum-based financial instruments offer the optimum access point for investors looking to have Ethereum in their portfolios.
“If you look at trading volumes, because it is important to look at both [not just flows], 25% of trading volume is because there has been a lot of outflows. Not just from the other higher-priced Ethereum ETF products, but probably also from proxy vehicles. Investors really want to get their ETH exposures, especially if they are going to use it in the context of an overall portfolio in an ecosystem they have confidence in,” Cohen explained.
Cohen agreed that the focus will be on big wire houses like Morgan Stanley, Wells Fargo, and UBS in the remaining part of 2024 and into 2025. She acknowledged that companies are moving to solicit ETFs as portfolio diversifiers. She says advisors are doing due diligence and risk analytics, which could see the financial instruments integrated into model portfolios.
Read more: Ethereum ETF Explained: What It Is and How It Works
Cohen also observed that BlackRock currently allocates to crypto, crypto futures, and crypto ETFs. However, she shot down the prospects of a Solana ETF, citing investability concerns.
“Not in the near term. We look at the investability to see what meets the criteria and bar to be delivered in an ETF. For us right now, between both an investability consideration and what we hear from our clients, Bitcoin and Ethereum meet that bar. I think it will be a while before we see anything else [Solana ETF],” she added.
In these remarks, Cohen joins BlackRock’s head of digital assets, Robert Mitchnick, who signaled a cautious approach. Mitchnick hinted that BlackRock might not file for a Solana ETF anytime soon. In his remarks during the Bitcoin 2024 Conference in Nashville, he cited substantial market cap and maturity differences between leading cryptos and smaller assets.
Despite these reservations, BlackRock’s asset management peers, 21Shares and VanEck, have already filed for spot Solana ETFs. This suggests a growing interest in diversified crypto investment products.
Vitalik Buterin Remarks as Ethereum Turns 9
Amid woes surrounding ETH ETF outflows, Ethereum co-founder Vitalik Buterin wished the ecosystem a happy birthday as the network turns nine.
“Happy 9th birthday, Ethereum! Looking forward to seeing what the next decade brings,” Buterin wrote.
Ethereum was born on July 30, 2015, at 10:26 a.m. EST, with the founding team naming the first release the Ethereum Frontier. Citing Steven Taul, Ethereum’s Chief Operating Officer on the Ethereum Foundation’s blog dated June 22, 2015, “Frontier is coming – what to expect, and how to prepare.”
The launch only caught the eye of early crypto faithful, as the industry was still in its nascent stages. It was not a New York Times or Washington Post headline. “Grand in scale and flexible by design, it aims to decentralize pretty much anything on the Internet” was one of the most relatable descriptions paraded at the time.
Today, Ethereum is a huge ecosystem with millions of weekly active users and thousands of validators that decentralize the network. There are thousands of communities and over $403 billion in market cap.
It boasts versatile use cases, including DeFi and NFTs, which sustain its relevance in the crypto space. DefiLlama data shows that the total value locked (TVL) in the Ethereum ecosystem is now $59.66 billion.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
Nevertheless, while Ethereum has managed to thrive, it is not immune to regulatory and technological challenges. The rise of alternative platforms, such as Solana, Binance Smart Chain, and Polkadot, threatens its dominance. These competitors offer advanced technology and lower fees, luring away users and developers.
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