BlackRock says most investors only want Bitcoin and Ether as new ETF launches

The world’s largest asset manager, BlackRock, says investor demand for cryptocurrency exchange-traded funds (ETFs) remains overwhelmingly focused on Bitcoin and Ethereum, even as new crypto investment products enter the market.

Speaking about the firm’s digital asset strategy, BlackRock’s head of digital assets, Robert Mitchnick, said most clients show meaningful interest only in the two largest cryptocurrencies. He noted that while there are “pockets of interest” in other tokens, investor allocations continue to concentrate on Bitcoin and Ethereum.

Mitchnick described Bitcoin as an emerging “digital gold” and monetary alternative, while Ethereum is increasingly viewed as a technology-focused investment tied to blockchain innovation and decentralized applications.

Nonetheless, he claimed the firm still sees selective interest in other digital assets and will continue to review them as their ecosystems mature, gain liquidity, and expand into real-world applications.

He emphasized that the firm applies a very “discerning approach” when deciding which assets to include in an iShares ETF.

Morgan Stanley’s head of digital asset strategy, Amy Oldenburg, says at the DC Blockchain Summit that crypto ETF adoption remains in its early stages as financial advisors evaluate how digital assets fit into traditional portfolio models.

Oldenburg noted that most demand for spot crypto ETFs continues to come from self-directed investors rather than advisor-managed accounts. “This has been a journey, and we’re still very early on it,” she said during the panel discussion.

About 80% of ETF activity on Morgan Stanley’s platform comes from self-directed investors, according to Oldenburg, who described the firm’s 2024 rollout of bitcoin ETFs in brokerage accounts as a “managed and stepped journey.” The gradual expansion reflects wealth managers’ ongoing efforts to educate clients and incorporate crypto into portfolio construction.

“Self-directed is only a piece of the puzzle,” Oldenburg added. “We really have to do more work to understand with financial advisors how that fits into asset allocation models going forward.”

Morgan Stanley filed to list spot Bitcoin and Solana ETFs in January, signaling continued expansion in its digital asset offerings.

BlackRock launched a new Ether ETF, ETHB, this Thursday

When asked what the future might hold for crypto ETFs, including the potential for sophisticated structures like staking or conventional fund structures to bring in new investors, BlackRock’s head of digital assets said both are likely.

Mitchnick said that in his firm’s case, he expects the new Ether ETF, iShares Staked Ethereum Trust (ETHB), to appeal to some investors, while the earlier-established IBIT, with a more conventional structure, will remain a preferred option.

He added, “Will we see some more exotic structures coming into the space? I think no question. Some of those will be interesting. Some of them will resonate with investors.” He maintained, however, that his firm will proceed carefully before deciding how else to expand and what to incorporate.

BlackRock just launched the Ether ETF, ETHB, this Thursday. The fund has pulled in over $43 million in net inflows. Moreover, according to Bloomberg Intelligence analyst James Seyffart, the fund generated nearly $16 million in trading volume since its debut with $100 million in assets under management. 

He commented, “The vast majority of the trading is done, and we are at $15.5 million in trading volume for the BlackRock staked Ethereum ETF — ETHB. Very, very solid for a day 1 ETF launch.”

The new ETF offers staking, introducing an income element that portfolio managers view as a meaningful incentive and a potential driver for faster adoption compared to Bitcoin products.  It still provides users with a traditional brokerage account

Mitchnick says BTC ETF investors have maintained a steady accumulation approach

In his interview with CNBC, Mitchnick also noted that over 90% of Bitcoin ETF investors have consistently been accumulating the token. He stated that most retail investors think long-term and thus often purchase holdings when asset prices fall.

On the other hand, he pointed out that short-term trading is largely limited to the roughly 10% of demand represented by hedge funds. He also asserted that even with Bitcoin’s price drop, IBIT still ranked fourth globally for ETF inflows in 2025, pulling in about $26 billion.

He remarked, “There’s clearly been a lot of selling pressure elsewhere in the Bitcoin ecosystem, on crypto exchanges, on these offshore levered perps platforms. But the ETF investor base has taken a much steadier, longer-term fundamental view of things.”

Meanwhile, the asset manager is still planning to introduce a Bitcoin Premium Income ETF that uses covered call strategies on Bitcoin futures to provide yield. The steady payouts, however, might come at the expense of potential gains in IBIT, which tracks Bitcoin’s market price.