At the Bitcoin 2024 conference, Robert Mitchnick, head of digital assets at BlackRock, the world's largest asset manager, said in an interview that despite the launch of the Ethereum spot ETF this week, it is unlikely to open the door for other crypto assets such as Solana (SOL) on the ETF stage. In a conversation with Bloomberg ETF analyst James Seyffart, Robert Mitchnick said:
"I don't think we will see a long list of cryptocurrency ETFs. If you look at Bitcoin, it is now about 55% of the market value. ETH is 18%. The next investable asset is about 3% (SOL, BNB). It simply does not meet that threshold or record of maturity, liquidity, etc."
The current Ethereum spot ETF has only attracted about 20% to 25% of the inflows compared to the Bitcoin spot ETF. Bitcoin ETFs have achieved breakout success, especially BlackRock's IBIT Trust, which has performed well across the United States and is the second best performing ETF this year after the S&P 500. This product also represents more than 20% of BlackRock's inflows this year, with only one day of outflows so far.
Robert Mitchnick said: [We don't think Bitcoin and Ethereum are really competitors. Bitcoin is trying to be an alternative to global currency as a potential global payment system, while Ethereum is seen more as a technology platform for building novel applications. So, they are more complementary than alternatives. "
Robert Mitchnick added that although the regulatory provisions are still unclear, the US Securities and Exchange Commission (SEC) has made it clear that it wants to draw the line somewhere. For example, Robert Mitchnick said that the SEC is unlikely to approve an Ethereum spot ETF with a pledge function.
The value of Bitcoin
Robert Mitchnick said that a typical investor in BlackRock's IBIT Trust usually allocates 2% to 3% of funds because of Bitcoin's growth potential. He emphasized that Bitcoin is a completely different asset type from stocks, fixed income or other traditional assets, with a fundamentally different value proposition, and BlackRock's client base from retail investors to ultra-high net worth clients are beginning to realize this. He added:
"You have begun to see this shift, people see Bitcoin as a potential safe haven."
