Following the approval of spot Bitcoin ETFs in January, the SEC also gave the green light to spot Ethereum ETFs in May. However, despite the initial optimism, Ethereum ETFs have struggled to meet expectations, showing weaker inflows compared to their Bitcoin ETF counterparts.
While some analysts anticipate a shift in this trend, BlackRock remains less optimistic about an immediate change.
BlackRock’s Take on Ethereum ETFs
Speaking at the Messari Mainnet conference in New York, BlackRock’s Head of Digital Assets, Robert Mitchnick, expressed disappointment in the performance of BlackRock’s Ethereum ETF (ETHA) compared to the Bitcoin ETF. He noted that Ethereum ETFs have seen much lower trading volumes and capital inflows than Bitcoin ETFs, a situation he believes is unlikely to change soon.
Mitchnick further commented on why Ethereum lags behind as an investment asset, explaining, “I think the investment story and narrative around ETH are somewhat harder for many investors to grasp compared to Bitcoin. That’s why we’ve been conducting education sessions with many of our clients on this topic.”
A Strong Start Despite Expectations
Despite these challenges, Mitchnick acknowledged that ETHA has had a strong start. Comparing ETHA to other Ethereum ETFs, he highlighted that reaching $1 billion in assets under management in just seven weeks is rare. “In most cases, it takes years for new ETFs to reach $1 billion. This is a big achievement for ETHA,” he said.
While BlackRock doesn’t expect Ethereum ETFs to reach the same scale as their Bitcoin counterparts in terms of flows and assets under management (AUM), they remain positive about the strong initial performance.
