IMPORTANT POINTS:
- BlackRock focused on Bitcoin and Ethereum due to demand from its clients, showing skepticism towards other cryptocurrencies.
- BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), has raised more than $22 billion since its launch in January.
- Despite BlackRock’s caution, other asset managers such as VanEck and 21Shares have filed applications for Solana-focused ETFs.
BlackRock’s Robert Mitchnick expressed skepticism about the growing trend of alternative cryptocurrencies. At the Bitcoin 2024 conference, he mentioned that BlackRock’s clients were primarily interested in Bitcoin and Ethereum, showing little demand for other cryptocurrencies.
BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), became the largest Bitcoin ETF since its launch in January, accumulating over $22 billion. The firm subsequently introduced its iShares Ethereum Trust (ETHA), which also saw strong inflows in its early days.
Despite BlackRock’s cautious stance, other asset managers continued to pursue crypto ETFs. VanEck and 21Shares recently filed applications for Solana-focused ETFs, and Franklin Templeton also showed interest in the cryptocurrency.
Mitchnick believed that Bitcoin and Ethereum served different purposes in the market. According to him, Bitcoin was considered a global monetary alternative, while Ethereum supported a variety of diverse applications. He predicted that investors would allocate the majority of their cryptocurrency investments to Bitcoin and a smaller portion to Ethereum.
BlackRock’s success with IBIT suggested that while other cryptocurrency ETFs might face challenges, the firm remained focused on Bitcoin and Ethereum due to current investor preferences. This strategy reflected the predominant demand from BlackRock’s clients for the top two cryptocurrencies rather than lesser-known alternatives.
