BlackRock Sees Little Appetite for Crypto ETFs Beyond Bitcoin, Ethereum

Hoping to see more crypto exchange-traded funds (ETFs) after the launch of Spot Bitcoin and Ethereum funds in the US? Don’t hold your breath, says BlackRock.

Related: ETH Dips as Analysts Predict More Trouble Ahead Post ETF Launch

The American multinational investment company, with assets under management (AUM) of US$9.101 trillion (AU$13.88 trillion), is the world’s largest asset manager. It not only holds the largest BTC ETF but is also on track to have the largest ETH ETF, excluding Grayscale’s heavily outflowing converted fund.

So, with that weight behind BlackRock, whenever anyone speaks on behalf of the firm, everyone in the financial world listens.

BlackRock CEO Larry Fink has been an outspoken supporter of crypto in general, and Bitcoin specifically. Most recently, Fink said he used to be a crypto-sceptic but has come to believe Bitcoin is ‘legitimate’ after educating himself about it.

Clients Have Little Interest in Anything But ETH, BTC

However, it seems that interest is primarily focused on Bitcoin and Ethereum, because during the Bitcoin2024 conference, which started on July 25 in Nashville, Tennessee, Robert Mitchnick gave some interesting insights into the thinking of BlackRock

BlackRock’s head of digital assets said the firm has “very little interest” in crypto beyond the two major assets.

During a panel titled ‘From Strategy to Innovation: BlackRock’s Bitcoin Journey’, Mitchnick told the audience their clients have not asked for access to more crypto products.

I would say that our client base today, their interest overwhelmingly is in Bitcoin first, and then somewhat in ETH […] and there’s very little interest today beyond those two.

Robert Mitchnick, BlackRock

He doesn’t believe that there will be a “long list of crypto ETFs”, and that most of their clients will stick to an 80/20 portfolio in Bitcoin and Ethereum. Mitchnick explained that BlackRock does not view these assets as being in direct competition with each other.

Not Everyone Agrees with BlackRock

While BlackRock may not be alone with its views, it’s certainly not the only opinion out there. For example, Franklin Templeton believes that there could be a Solana ETF, saying “there are other exciting and major developments that we believe will drive the crypto space forward”.

Related: Largest Miner Marathon Digital Goes “Full HODL”, Adds to $1.28 Billion Bitcoin Stash

Others like Ripple CEO Brad Garlinghouse have pointed to XRP and Cardano for the next crypto ETFs.

I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great.

Brad Garlinghouse, Ripple

Additionally, Hashdex has just filed for a crypto index ETF, which will feature ETH and BTC for now, but there are plans to add more cryptocurrencies – pending regulatory approval.