BlackRock Reveals: Bitcoin and Ether Dominate Investor Demand as New Crypto ETFs Launch
BlackRock's head of digital assets, Robert Mitchnick, issued a stark assessment of current investor appetite, revealing that the vast majority of client interest is concentrated solely on Bitcoin and Ethereum as new spot ETFs go live. Mitchnick framed Bitcoin as the emerging 'digital gold' and Ethereum as the essential technology play, while acknowledging only 'pockets of interest' exist for other tokens, signaling a dramatic concentration of capital into the two market leaders despite a rapidly expanding ecosystem.
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, Mitchnick said both are likely.
He said that in his firm’s case, he expects the new Ether ETF, iShares Staked Ethereum Trust (ETHB), to appeal to some investors, and the earlier-established IBIT, with a more conventional structure, to remain a preferred option for investors.
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.
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