BlackRock’s head of digital assets, Robert Mitchnick, said Bitcoin and Ethereum remain the only two cryptocurrencies attracting meaningful investor demand.
Conclusion
- BlackRock says that Bitcoin and Ethereum dominate investor demand.
- IBIT sees $26 billion in revenue in 2025 despite Bitcoin price decline.
- ETH staking ETF aims to add yield to ether exposure.
This is when the asset manager evaluates future ETF products. Speaking on CNBC after the launch of BlackRock’s ETHB ETF, Mitchnick stated that Bitcoin commands about 60% of the crypto market share, while Ethereum has a low stake.
The comments come as BlackRock’s IBIT Bitcoin ETF has recorded $26 billion in inflows through 2025, despite Bitcoin falling nearly 50% from its October peak.
Last year, IBIT ranked fourth globally in terms of ETF inflows and was among the top 20 products that offer positive flows while offering negative price returns.
The year-to-date trend remains slightly positive for IBIT, with around 90% of the investor base maintaining a steady accumulation pattern through the drawdown.
Bitcoin and Ethereum dominate investor allocation decisions
Mitchnick described Bitcoin as an “emerging monetary alternative to digital gold” while referring to Ethereum as “a technological bet around blockchain innovation and the various use cases of ethereal and digital assets.”
The difference determines how investors approach portfolio allocation, and Ethereum’s exposure aligns more closely with technology and venture capital allocation.
BlackRock’s ETHA became the third-fastest ETF in history to reach $10 billion in assets under management, trailing only Fidelity’s IBIT and FBTC.
The newly launched ETHB adds a staking yield to determine exposure to ether, adding what Mitchnick called a “limitation” in the original ether ETF product, which lacked yield mechanisms.
Mitchnick said the staking feature makes ETHB “as close to a silver bullet as Bitcoin ETPs are for many investors in terms of a very convenient vehicle.”
Long-term investors are driving Bitcoin and Ethereum ETFs
Retail investors and financial advisors make up the bulk of demand for ETFs, and both segments show opportunistic buying when prices decline.
Hedge funds account for about 10% of flows, primarily underlying trades that include going long ETFs while shorting futures contracts. These trades remain neutral for the price of Bitcoin, but create volatility in the flow while compressing the underlying spread.
Mitchnick noted that BlackRock sees “pockets of interest” in other crypto assets, but maintains a “prudent approach” to product expansion.
The company continues to evaluate assets based on liquidity, scale and use cases, but Bitcoin and Ethereum remain where investors’ attention is most focused.
