BlackRock’s head of digital assets
Key receivers
BlackRock's Michnik noted that their customer base is primarily interested in Bitcoin, with some interest in Ethereum. Blackrock sees Bitcoin and Ethereum as complementary assets with distinct roles.
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The SEC's green light for spot Ethereum ETFs has fueled optimism about the future of other crypto ETFs, with some anticipating that Solana's funds will be next in line. However, BlackRock's head of digital assets, Robert Michnick, thinks this is unlikely, as clients show “very little” interest in other cryptos beyond bitcoin and ethereum.
“Our customer base today, their interest is first in Bitcoin, then in ETH… and I would say today is the smaller of the two,” Michnick said yesterday at the Bitcoin 2024 convention in Nashville.
“I don't think we'll see a long list of crypto ETFs,” Michnick said.
BlackRock's iShares Bitcoin Trust (IBIT) went live in January. The fund's holdings are worth more than $22 billion in bitcoin, making it the world's largest bitcoin ETF, according to updated data.
Following the debut of IBIT, BlackRock entered the Ethereum ETF market earlier this week. According to Crypto Briefing, his iShares Ethereum Trust (ETHA) ended its third day of trading with a daily gain of nearly $71 million.
BlackRock may see limited client interest in other crypto ETFs, but some of its competitors may not.
On June 27, asset manager VanEyck made its first U.S. filing for Solana Trust. Matthew Siegel, head of digital assets research at VanEck, believes the company believes SOL is a commodity.
A day after VanEck filed, 21Shares filed to launch the “21Shares Core Solana ETF,” which seeks to provide direct exposure to Solana. The organization said the filing was an important step.
Franklin Templeton, another major fund manager, said Solana in an X post on the day the Ethereum ETF launched.
Not all fund managers agree with BlackRock. Cathy Wood, CEO of ARK Invest, said in an interview with the WSJ in February that the SEC is unlikely to accept spot products for any crypto other than Bitcoin and Ethereum.
Wood's ARK Invest, however, has picked the Ethereum ETF as a spot to watch following its listing approval on May 23.
Bitcoin and Ethereum as additional assets
BlackRock views bitcoin and Ethereum as complementary assets with distinct roles rather than “competitors” or “substitutes,” Michnick said.
“Bitcoin is trying to be a global financial alternative, as a potential global payment system,” the executive explained.
Michnik predicts that investors will allocate approximately 20% of their crypto holdings to Ethereum and the remaining 80% to Bitcoin.
Earlier, BlackRock Global Investments Chief Fixed Income Officer Rick Reeder told the WSJ that BlackRock may add more bitcoin to its portfolio if investors feel more comfortable with it.
BlackRock's IBIT is one of the most successful ETFs. According to Crypto Briefing, the fund has outperformed Nasdaq ETFs this year, ranking fourth among 3,000 US ETFs.
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