BlackRock, the world’s largest asset manager, has shifted focus to Bitcoin and Ethereum, opting not to launch new altcoin-based ETFs.
The company’s Bitcoin (BTC) and Ethereum (ETH) ETFs, IBIT and ETHA, respectively, have shown significant performance milestones this year.
Stellar Performance Drives Strategic Focus for BlackRock’s IBIT and ETHA
Bloomberg ETF analyst Eric Balchunas reported the world’s largest asset manager’s stance, citing Jay Jacobs, head of BlackRock’s ETF practice. He said that BlackRock has no plans to launch new altcoin-focused ETFs. Jacobs also emphasized the firm’s intention to focus on expanding the reach of its existing Bitcoin and Ethereum ETFs, which have performed exceptionally well so far.
“We are just at the tip of the iceberg with Bitcoin and especially Ethereum. Only a small fraction of our clients own IBIT and ETHA, so that’s what we are focused on (rather than launching new altcoin ETFs),” Jay Jacobs reportedly said.
The statement primarily highlights BlackRock's strategy of deepening its presence in the cryptocurrency market through its flagship ETFs, rather than diversifying into smaller altcoins like Solana (SOL) or Ripple's XRP.
Indeed, BlackRock’s Bitcoin ETF has been a standout performer, recently outperforming more than 50 European funds combined in trading volume. Meanwhile, its Ethereum ETF entered the prestigious $1 billion club just two months after its launch. Taken together, these milestones show the growing institutional appetite for these digital assets.
BlackRock Bitcoin ETF outperforms
BlackRock's success, in fact, has been widely recognized, especially by the market. The company's Bitcoin ETF was recently ranked as the best performer of the decade alongside Fidelity's FBTC.
These achievements are largely in line with BlackRock’s cautious approach to the broader crypto space. Earlier this year, the firm confirmed that it was not pursuing a Solana ETF, despite market buzz. Then, in late July, BlackRock’s head of digital assets Robert Mitchnick cast further doubt on the immediate viability of Solana ETFs.
“I don’t think we’re going to see a long list of crypto ETFs. If you think about Bitcoin, it’s about 55% of the market cap right now. Ethereum is at 18%. The next plausible investable asset is at, like, 3%. It’s just not close to reaching that threshold or track record of maturity, liquidity, etc.,” Mitchnick said.
Meanwhile, BlackRock’s skepticism about the XRP ETF likely stems from regulatory uncertainty surrounding the token. By focusing on Bitcoin and Ethereum, the asset manager appears to be doubling down on assets with proven resilience and market appeal.
Market expectations for altcoin ETFs
BlackRock’s cautious stance on altcoins is in line with its conservative investment philosophy, as exhibited by its hesitation to endorse a Bitcoin reserve. However, the firm has been vocal about Bitcoin’s role in institutional pockets, advocating for up to 2% allocation of portfolios to BTC. This reflects confidence in the asset’s long-term potential.
While BlackRock remains uninterested in launching altcoin ETFs, analysts expect the U.S. regulatory landscape to change under Donald Trump. Some predict that ETFs for assets like Solana and XRP could receive approval by the end of 2025.
“Solana’s biggest win coming out of a new Trump presidency will be our long-awaited ETF in 2025 or 2026. Unsurprisingly, the incredible team at VanEck will lead the way here with support from 21Shares and Canary Capital,” said Dan Jablonski, head of growth at news and research firm Syndica.
BlackRock’s potential move toward entering altcoin-based markets likely hinges on achieving regulatory clarity, which could drive significant demand. Meanwhile, Mike Venuto, co-founder of Tidal Financial Group, provided an outlook on the broader ETF market, as noted by Balchunas.
“We have people coming to us all the time trying to pitch ‘Bitcoin plus something else’ ETFs. Every options strategy you can think of will be tied to Bitcoin, Nvidia, Tesla and MicroStrategy in ETFs. It’s coming,” Balchunas said, citing Venuto.
BlackRock’s record-breaking success with Bitcoin and Ethereum ETFs highlights its strategic focus and alignment with market demand. While others explore altcoin ETFs, BlackRock’s dedication to expanding its existing offerings positions it as a leader in shaping the future of institutional crypto investing.
The article BlackRock prioritizes Bitcoin, Ethereum and postpones ETF plans for altcoins appeared first on BeInCrypto Brasil.
