Key Points
- BlackRock’s head of digital assets, Robert Mitchnick, said that a new wave of investors could be headed to Bitcoin ETFs.
- The financial institutions could include sovereign wealth funds, pension funds, and endowments.
The crypto market should not lose hope in interest in Bitcoin ETFs, according to BlackRock, after a slight four-day pause following 71 consecutive days of inflows.
BlackRock’s head of digital assets, Robert Mitchnick, expects a new wave of interest from a different type of investors.
According to the financial giant, the next months will probably see financial institutions such as sovereign wealth funds, pension funds and endowments starting to trade Bitcoin ETFs.
In a recent interview, Mitchnick said that the company is seeing a “re-initiation” of the topics around Bitcoin, which will bring back to the table the issue of allocating portfolio shares to Bitcoin.
He believes that many of the interested firms, such as the ones mentioned above, along with insurers, family officers, and other asset managers, are currently having ongoing diligence and research conversations about the subject. BlackRock is playing a role from an educational point of view.
Mitchnick also highlighted that the company has been talking about Bitcoin to these entities for a few years now.
Since the US approval of the Bitcoin ETFs back in January, the crypto-oriented products have managed to accumulate over $76 billion.
He said that the next step is expected to be the unrestricted offering of BTC ETFs to significant clients of companies such as Morgan Stanley.
BlackRock also backs Ethereum
Back in November 2023, BlackRock also filed for an Ethereum ETF, and the move was followed by the firm’s CEO Larry Fink talking about potential tokenization. This is the representation of traditional assets on blockchains.
While in the US, an Ethereum ETF has not been approved yet, Hong Kong revealed its approval for Bitcoin and Ethereum ETFs recently, a move that triggered higher ambitions for the region to flourish as a crypto hub.
New reports from the Reuters press agency reveal that the US SEC could deny the spot Ethereum exchange-traded funds in May, citing sources familiar with the matter.
Mitchnick continued and revealed during the interview that when the company thinks about the crypto sector, it sees the potential for digital assets to benefit its clients and capital markets with a focus on three important areas: crypto, stablecoins, and tokenization.
Earlier today, BlackRock shared a post on their X account, revealing the minority investment in Willow – a startup that provides educational and marketing services to financial advisors.
The firm wrote that this investment underscores the commitment to helping advisors as they prepare for the next generation of clients.
The team at BlackRock also noted that the initiative aligns with their purpose to help people experience financial well-being.
We are pleased to announce our minority investment in Willow – a startup providing educational and marketing services to financial advisors. This investment underscores our commitment to helping advisors as they prepare for the next generation of clients and aligns with our… pic.twitter.com/syTQB3ezfQ
— BlackRock (@BlackRock) May 2, 2024
The other day, BlackRock’s spot Bitcoin ETF, IBIT, saw $37 million in outflows, following four days of zero inflows and outflows.
