Robert Michnick, head of digital assets at BlackRock, said that Bitcoin ETFs are currently attracting greater investor demand than Ethereum ETFs.
Bitcoin Conference 2024 in Nashville, which is expected The event is expected to attract 20,000 crypto enthusiasts, and comes at a time when ETFs are now offering exposure to the biggest cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).
Ethereum spot ETFs are newcomers to the market, but spot Bitcoin ETFs have been trading since January and have amassed more than $60 billion in assets under management, according to SoSoValue. Michnick noted that it’s too early for the flows to indicate whether investors will reallocate capital from Bitcoin funds to Ethereum ETFs.
Spot ether ETFs accounted for 79% of the total first-day inflows recorded by spot bitcoin products. Data including outflows from Grayscale reduced that figure to 16% as investors exited the firm’s ether vehicle. Ethereum responded with a price drop, falling 7% on July 25.
Similar outflows occurred in January when Bitcoin ETFs were launched. Investors also moved away from Bitcoin ETFs at that time. If this pattern continues, the markets could see days or even weeks of Bitcoin outflows. Sell fatigue could set in after that, and overall inflows could turn positive if Bitcoin ETFs capture Wall Street demand.
However, many in the crypto industry see Bitcoin and Ethereum ETFs as a catalyst for more U.S. crypto funds to launch soon. Issuers like VanEck have filed for a Solana (SOL) fund designed similarly to existing spot ETFs.
Speaking to Bloomberg’s James Seyfart, Michnick said that BlackRock currently sees no demand for crypto ETFs other than Bitcoin and Ethereum.
