The world’s largest asset manager, BlackRock, should not be allowed to launch a Solana exchange-traded fund (ETF) simultaneously with the US-based issuers who have already filed for one, says ETF analyst James Seyffart.

“That’s messed up,” Seyffart told ETF analyst Nate Geraci in a video published to YouTube on Saturday, discussing a hypothetical scenario where BlackRock — despite no filing so far — jumps in at the last minute with a spot Solana (SOL) ETF and launches alongside firms that applied months ago.

The smaller firms put in all the hard work, Seyffart says

“That shouldn’t happen,” Seyffart said. “These smaller issuers, these guys have spent so much time working with the SEC getting the paperwork right,” he added.

VanEck was the first US firm to apply for a spot Solana ETF in June 2024. Other Solana ETF bidders include Bitwise, Grayscale, Invesco, 21Shares, CoinShares, Canary Capital, Franklin Templeton and Fidelity Investments.

Since the initial filing, the SEC has issued several delays in its approval decision and requested amended application forms to gain greater legal clarity on the proposed products.

However, Seyffart is leaning toward the view that BlackRock will instead launch a crypto index product tracking the spot prices of several cryptocurrencies beyond the two largest, Bitcoin (BTC) and Ether (ETH).

BlackRock may swoop in if demand is high

“That’s what I would do if I were BlackRock,” Seyffart said.

NovaDius president Nate Geraci said BlackRock may be waiting for its competitors to launch other crypto products first in order to gauge market demand. “If the demand looks like it’s going to be really good, perhaps they can just swoop in,” he said.

Related: Traders bet on $200K year-end Bitcoin, but real odds tell a different story

Geraci also said that if BlackRock chooses not to file, they may be “making a market call that it is just going to be Bitcoin and ETH and nothing else.”

However, Seyffart says it’s not a major risk for BlackRock if they don’t file for another crypto ETF as approximately 90% of the crypto market cap is in Bitcoin and Ethereum. “Even if they don’t, I don’t think it is that big of a miss,” he said.

“It obviously is not going to be what it is and was for Bitcoin, and like I said, I’m pretty bullish on the demand I see for index products,” Seyffart said.

Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’

]]> https://earlybirdsinvest.com/blackrock-launching-a-sol-etf-in-first-wave-would-be-messed-up-analyst/feed/ 0 52294 https://earlybirdsinvest.com/bitcoin-sellers-dry-up-as-weekly-exchange-inflows-near-2-year-low/ https://earlybirdsinvest.com/bitcoin-sellers-dry-up-as-weekly-exchange-inflows-near-2-year-low/#respond Tue, 01 Apr 2025 07:39:21 +0000 https://earlybirdsinvest.com/bitcoin-sellers-dry-up-as-weekly-exchange-inflows-near-2-year-low/

Bitcoin (BTC) faces a new “consolidation zone” as exchange inflows tag multiyear lows, new analysis says.

In a post on X on April 1, Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, declared that Bitcoin sellers had “dried up.”

Average exchange inflows down 64% since November

Bitcoin sell-side pressure has eased considerably since its first push above the $100,000 mark in late 2024, data shows. 

Analyzing BTC inflows to major crypto exchanges, Adler revealed a sharp drop in the 7-day average total sent for sale.

“The average selling pressure on top exchanges has dropped from 81K to 29K BTC per day,” he summarized alongside a CryptoQuant chart. 

“Welcome to the zone of asymmetric demand.”

On March 23, 7-day average inflows hit their lowest levels since May 2023, when BTC/USD traded at less than $30,000.

Given that current prices are almost three times that amount, Adler sees the potential for light at the end of the tunnel for the 2025 Bitcoin bull market correction.

“The market has successfully absorbed waves of profit-taking following the break above $100K,” he concluded. 

“Sellers have dried up, and buyers seem comfortable with current price levels – setting the stage for a structural supply shortage. April-May could turn into a consolidation zone – a calm before the next impulse.”

Binance inflows hint at a “more neutral stance”

As Cointelegraph reported, signs already hint that market sentiment has become aligned with price reality.

Related: Bitcoin trader issues ‘overbought’ warning as BTC price eyes $84K

The Coinbase Premium, which acts as a proxy for US exchange demand, continues to circle neutral levels as time goes on, recovering from negative territory despite no real price rebound.

That said, short-term analysis warns of a fresh uptick in inflows this week — with the exception not of Coinbase but global exchange Binance.

“Short Term Holders are sending significantly less BTC to Binance—only 6,300 BTC, compared to an average of 24,700 BTC to other exchanges,” CryptoQuant contributor Joao Wedson, founder and CEO of data analysis platform Alphractal, noted in one of its “Quicktake” blog posts. 

“This suggests lower selling pressure on Binance, with many traders possibly adopting a more neutral stance.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.