BlackRock’s Robert Mitchnick Believes Crypto ETF List Will Remain Short

• BlackRock’s Mitchnick reveals their client base is overwhelmingly interested in Bitcoin. 
• The Blackrock exec explains why the list of crypto ETFs will remain short. 
• Mitchnick’s outlook wasn’t entirely bleak. 

With Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETF) finally a reality, all eyes are on the next asset to join the elite ranks. Solana (SOL) and Ripple (XRP) have emerged as frontrunners, with issuers like VanEck , 21Shares , and CBoe laying the groundwork for a potential approval. 

While the crypto community carefully looks for subtle hints from issuers and the U.S. Securities and Exchange Commission (SEC), BlackRock’s Head of Digital Assets, Robert Mitchnick, offers a more contrarian view, tempering the prevailing excitement. 

BlackRock’s Mitchnick Predicts Crypto ETF to Remain Limited

In a conversation with Bloomberg Analyst James Seyffart at the Bitcoin Conference 2024, Mitchnick shed light on the investment preferences of BlackRock’s client base. He revealed that their primary interest lay overwhelmingly in Bitcoin, followed by some in Ethereum and “very little” in other digital assets.

Mitchnick emphasized that BlackRock’s recently launched Ethereum ETFs are designed to “complement, not compete” with their existing Bitcoin offerings. Characterizing the nascent ETH ETFs as an add-on for their clients, he viewed this development as a positive indicator of the ecosystem’s health.

Considering its client base’s interest, the BlackRock executive also explained that the list of crypto ETFs will remain relatively short. Mitchnick noted the significant market share dominance of Bitcoin (55%) and Ethereum (18%), in contrast to other investable assets, which only held a mere 3%. He highlighted that other assets are “not close to being at that threshold or track record of maturity, liquidity, et cetera.”

However, Mitchnick’s outlook was not entirely bleak. He expressed confidence that the crypto asset class is here to stay and anticipated future opportunities for BlackRock to expand its involvement in the market. 

BlackRock’s Success With Crypto Products

While BlackRock is taking a cautious approach to releasing more crypto ETFs, it has seen great success with its tokenization fund this year. BUIDL, BlackRock’s tokenized fund, recently surged past the $500 million mark in assets under management (AUM), a milestone that makes it the first of its kind to reach this mark. 

Additionally, BlackRock’s Bitcoin ETF has been a standout performer since its inception, boasting the largest AUM among its peers and rapidly approaching $20 billion in AUM.