BlackRock expands its encryption ETF battlefield: What's next after BTC and ETH?

Translation: Plain Language Blockchain

Global asset management giant BlackRock, which manages over $11.7 trillion in assets, is actively expanding in the cryptocurrency sector. Following the tremendous success of its iShares Bitcoin Trust ETF, BlackRock has launched an Ethereum ETF and is now planning to expand its product line: adding more major crypto assets such as Cardano(ADA), Polkadot(DOT), and Solana(SOL) to its ETF roster.

The asset scale of Bitcoin ETFs has rapidly soared to over $70 billion, becoming the fastest-growing ETF in history. Ethereum ETFs follow closely, managing assets of $4 billion. BlackRock has made it clear: "We will continue to explore which crypto assets are suitable for ETF structures."

This report delves into BlackRock's strategy and its implications for the next phase of cryptocurrency.

1. Why is BlackRock expanding? Strategic analysis behind it

a) ETF is the gateway - user demand surges

Bitcoin ETFs have quickly attracted hundreds of billions of dollars in institutional capital. Hedge funds, pension funds, and traditional wealth management firms are all getting involved. What’s the reason? Because ETFs provide a regulated, familiar, and low-friction channel for cryptocurrency investment — a perfect springboard for large capital to enter.

b) Extending cryptocurrency aligns with trends and vision

BlackRock's interest is not new. In 2024, it launched the BUIDL Tokenized Money Market Fund with assets exceeding $3 billion. Their vision is to connect traditional finance with decentralized finance ( DeFi ) into a single Tokenized ecosystem, and ETFs are the perfect bridge.

c) Lead instead of follow

Although companies like Grayscale and VanEck have also submitted ETF applications for ADA, DOT, and SOL, BlackRock, with its strong brand influence and capital scale, is not just a follower but is likely to become the next dominant issuer in this field.

2. Which cryptocurrencies might join the ETF club?

• Cardano(ADA): A smart contract platform that emphasizes decentralization and governance, with regulatory-friendly features.
• Polkadot(DOT): Cross-chain interoperability protocol, regarded as the infrastructure for Web3.
• Solana(SOL): Known for its ultra-fast transaction speeds and low fees, it is a popular candidate for explosive growth in the ecosystem. These assets have high market capitalization, active communities, and relatively clear compliance pathways, making them strong competitors for ETFs.

3. What does this mean for the cryptocurrency market?

a) Main Token obtained "Asset Management Certification"

Being included in the BlackRock ETF signifies a signal of institutional trust. Demand from sovereign wealth funds, retirement plans, and traditional portfolios is expected to increase.

b) DeFi and Real World Assets ( RWA ) expansion is boosted

The increased attention to these assets means that on-chain applications, derivatives, and tokenized products will gain more appeal. Developers and analysts will find new opportunities in DeFi-RWA hybrid innovations.

c) Tokenization momentum accelerates

BlackRock's own tokenized fund indicates its long-term strategy. It is expected that stocks, bonds, real estate, and more will be further tokenized to achieve ETF-like liquidity, changing the nature of digital assets.

4. What does it mean for ordinary investors?

a) ETF lowers the entry threshold

No wallet, no seed phrase, no complicated KYC process required. ETFs are as simple as stocks - click to buy. This enables new investors to allocate crypto assets in a way that poses no native crypto risk.

b) Investment themes are clearer

BTC/ETH: Value Storage + Risk Hedge.

ADA/DOT/SOL: Technological innovation + high-return bets. This allows investors to build a flexible risk-adjusted portfolio.

c) Research resources surge

BlackRock's institutional-level research will benefit retail investors. ETF-driven crypto analysis is expected to surge, further lowering the learning curve for entering the crypto market.

5. Risks and challenges still exist

a) SEC approval remains uncertain

The United States is more friendly towards BTC and ETH. For mid-cap tokens, the regulatory classification and approval remain unclear.

b) Volatility will not disappear

ETF identity ≠ price stability. SOL or ADA may still experience a pullback of over 20% in a volatile market. Don't let the "ETF" packaging obscure the inherent risks.

c) Token mechanism complexity

Unlike BTC, cryptocurrencies such as DOT and SOL involve staking yields, governance roles, and technical details. ETF buyers may need to gain a deeper understanding of the underlying structure of these assets.

6. What should you do next?

• Retail Investors: Keep a close eye on ETF applications. Once approved, positioning early on ETF listed assets may yield returns. Choose a secure trading platform.
• DeFi Developers: Ensure product compatibility with DOT/SOL mainnets to capture ETF-driven traffic and liquidity.
• Institutional Players: Analyze risk premium, staking mechanism, governance token economics - build strategic allocation models before ETF capital inflow.

Five Key Signals Behind BlackRock's Crypto ETF Expansion

• Industry Trends: ETF as a Regulatory Bridge

After the success of the BTC and ETH ETFs, BlackRock is expanding its product line to provide compliant investment avenues for traditional capital.

• Strategic Logic: From Speculation to Structured Exposure

ETFs will transform cryptocurrencies from "alternative assets" to "portfolio staples." It is expected that DOT, SOL, and ADA will follow BTC/ETH into institutional portfolios.

• Market Impact: Injecting New Liquidity into Top Tokens

The expansion of crypto ETFs may trigger new capital inflows, increasing the total locked value ( TVL ), trading volume, and visibility of DeFi and L1/L2 ecosystems.

• Investor Access: Low Friction, High Trust Crypto Gateway

ETFs provide traditional investors with an ideal way to invest passively, without technical barriers. A new class of capital is seamlessly entering the cryptocurrency market.

• Risk Reminder: Regulators Still Hold the Initiative

Final Thoughts: Will ETFs Trigger the Next Web3 Super Cycle?

From the individual success of BTC to the DeFi boost of ETH, we may see mid-cap L1 Tokens being introduced through compliant ETF channels.

BlackRock is not just creating products - it is trying to define the cryptocurrency capital structure.

If DOT, ADA, or SOL ETFs become a reality, they may ignite:

• The next wave of institutional capital inflow,
• The reactivation of developers and liquidity,
• And the new narrative of tokenized asset classes.

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