For BlackRock, the only interesting crypto ETFs are Bitcoin and Ethereum
2 min readBlackRock, a leading asset manager, notes that there is little interest from its clients in cryptocurrencies beyond Bitcoin and Ethereum.
During the Bitcoin 2024 conference, held on July 25 in Nashville, Tennessee, Robert Mitchnick, the company’s head of digital assets, highlighted that he does not expect a significant increase in the number of exchange-traded funds (ETFs) dedicated to other cryptocurrencies.
Mitchnick explained that BlackRock’s client focus is currently largely on Bitcoin, followed by moderate interest in Ethereum. Outside of these two assets, demand for other cryptocurrencies is quite limited. He shared these observations during his panel discussion “From Strategy to Innovation: BlackRock’s Journey in Bitcoin.”
According to Mitchnick, the company is unlikely to significantly expand its crypto ETF offering in the near future. BlackRock has already introduced its first crypto funds to the market. The iShares Bitcoin Trust (IBIT) came in January and the iShares Ethereum Trust ETF (ETHA) in July.
There are other managers who disagree with BlackRock’s opinion
Furthermore, there is no consensus among asset managers about the future of crypto ETFs. While BlackRock is taking a more cautious view, Franklin Templeton, another large asset manager, is optimistic and even plans to expand its offering with a new product focused on Solana.
In a post on X on July 23, Franklin Templeton expressed enthusiasm for developments beyond Bitcoin and Ethereum, which the firm believes will significantly boost the cryptocurrency market.
BlackRock’s Robert Mitchnick noted that most of his clients view Bitcoin (BTC) and Ethereum (ETH) as complementary rather than direct competitors.
According to him, when clients invest in ETH ETFs, they usually do so as an addition to their existing crypto portfolio, rather than replacing their BTC holdings. Mitchnick also mentioned that data on investor flows into ETH ETFs is still scarce. They only started trading on July 23.
The executive highlighted that, in the context of cryptocurrencies, Bitcoin is still seen as the main store of value asset.
For the analyst, investors should have 20% of their portfolio in ETH and the rest in Bitcoin
Additionally, Mitchnick notes that Ethereum (ETH) seeks to encompass a variety of applications that are often not the focus of Bitcoin. According to him, Ethereum and Bitcoin act more as complements than as direct competitors or substitutes for each other.
He also mentioned that he expects investors to allocate about 20% of their cryptocurrency holdings to Ethereum, with the majority, or the remaining 80%, allocated to Bitcoin.
BlackRock’s cryptocurrency ETFs, including the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust ETF (ETHA), are among the most sought-after in the industry.
Finally, IBIT manages around $22 billion in assets, while ETHA has already reached almost $270 million in assets under management, just a few days after starting trading.
