Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
The world’s largest investment asset manager, BlackRock, closes the door on altcoins in terms of new spot ETFs. In that sense, the firm ensures that it will focus only on its Bitcoin (BTC) and Ethereum (ETH) products. This puts an end to speculation about what will be the next digital currency favored by BlackRock sponsorship.
This information comes from the company’s ETF head, Jay Jacobs, whose statements were cited by Bloomberg analyst Eric Balchunas in X. Thus, all developments in the firm’s exchange-traded fund area will come from BTC and ETH.
The businessman highlights that one of the reasons is that a very small fraction of his clients have investments in crypto ETFs. Thus, the work going forward is to strengthen these products to attract more customers instead of diverting attention to other investment instruments based on alternative currencies.
Jacobs emphasizes that when it comes to Bitcoin and Ethereum funds, the firm is just beginning its work. Thus, the avalanche of capital flowing into IBIT and ETHA are only the tip of the iceberg in BlackRock’s vision. However, this does not fit with the promotion of other Altcoin spot ETFs.
“We’re really just at the tip of the iceberg with Bitcoin and especially ethereum. Just a tiny fraction of our clients own ($IBIT and $ETHA) so that’s what we’re focused on (vs launching new alt coin ETFs)” – Jay Jacobs of BlackRock at ETFs in Depth.
— Eric Balchunas (@EricBalchunas) December 12, 2024
Altcoin ETFs to go public in 2025
Although BlackRock has no interest in launching ETFs other than BTC and ETH, other major firms are in that process. As such, several altcoin spot ETFs such as Solana’s SOL and Ripple’s XRP are expected to appear in 2025. Even though the SEC will reject some applications, the new administration will give the green light.
It should be remembered that the current Chairman of the SEC, Gary Gensler, will resign from his position on January 20, 2025. With this, an era of government hostility towards digital currencies ends. Tokens like SOL, XRP and a long list are considered unregistered securities.
With the new SEC Chairman, Paul Atkins, nominated for the position by Donald Trump, the regulatory environment will change completely. The agency’s new directive will place few obstacles on Cryptocurrency-related products. Thus, next year investors will have the opportunity to gain exposure to some tokens through exchange products.
The fact that BlackRock is not involved in this new stage is striking. That implies that altcoin spot ETFs will be low-income products in terms of Wall Street flows.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
