BlackRock Exec Highlights Ethereum ETF Struggles Compared to Bitcoin

BlackRock's head of digital assets, Robert Mitchnick, acknowledged that the trading activity and inflows for spot Ethereum ETFs lag significantly behind those of Bitcoin ETFs.

The interest in Ethereum ETFs has waned, contrasting sharply with the robust demand for Bitcoin.

Speaking at the Messari Mainnet conference in New York, Mitchnick highlighted the lackluster performance of BlackRock’s Ethereum ETF (ETHA) compared to its Bitcoin counterpart (BITB). The SEC’s recent delay in deciding on options trading for the Ether ETF further complicates its prospects.

Despite these challenges, he pointed out that ETHA has achieved over $1 billion in net inflows since its inception, a milestone not easily reached by most ETFs. BlackRock has been actively purchasing Bitcoin following recent Federal Reserve rate cuts, indicating a strategic focus on Bitcoin’s stronger market appeal.

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Mitchnick noted that the investment narrative surrounding Ethereum is more complex, making it harder for some investors to grasp, which is why BlackRock is committed to educating its clients about the asset. He cautioned that substantial inflows for Ether ETFs might not be realistic when compared to Bitcoin.

The first-mover advantage of Bitcoin, the leading cryptocurrency, is evident in the SEC’s approval of its spot ETF several months ahead of Ethereum’s. Since its launch, Bitcoin ETFs have attracted over $61 billion in assets under management, while Ether ETFs have struggled to keep pace. Last week, while Bitcoin ETFs saw inflows exceeding $61 million, Ethereum ETFs experienced $12 million in outflows.

Alexander Zdravkov