Robert Mitchnick, head of digital assets at Blackrock, said the explosive success of the Ishaares Bitcoin Trust (IBIT) is just the beginning. When Mitchnick talked to Bloomberg’s ETF IQ, he described the Bitcoin ETF phenomenon as a “very early” stage, with institutional capital still gradually working through onboarding and due diligence pipelines.
Bitcoin ETFs are “very early”
“There’s no such thing,” said Bloomberg’s Eric Balchunas. The ETF reached $70 billion in managed assets in just 341 days, a record pace, while the previous fastest GLDY took 1,691 days. “It’s just ridiculous numbers here,” Balchunas added.
Mitchnick attributes this historic influx to the starting point of retail enthusiasm and professional distribution. “It’s a lot of things coming together,” he said. “You wouldn’t have a chart like this without the actors who appeared at the same time.”
He continued: “Going out is a demand for retail and investors and putting the scope of small retail investors into super net worth. Now, lately, we’ve seen more wealth advisor adoption, more institutional adoption.”
But despite Ibit’s dominance and the dynamics of the entire sector, Mitchnick stressed that institutional penetration remains low. “It’s early,” he said when asked how far the wealth consultant took. “What we’re seeing is the consistent effort of most of the largest companies through diligence, research and approval processes…you’ve seen a lot of companies fast tracking. We’re talking about it quarterly rather than months.”
This timeline reflects the structural reality of traditional asset management, where new ETF approvals involve multi-year workflows. “Slowly but surely, you’ve seen an acceleration, especially in the past few months, where more noteworthy companies have lowered the barrier and approved their consultants to use this barrier and will continue,” Mitchnick noted.
In addition to regulatory comfort, Bitcoin’s evolving risk profile is a key role in institutional interests. “Bitcoin is a turbulent asset,” Mickey admitted. “At the same time, its risk and return drivers are significantly different from most assets in a traditional portfolio. This is important.”
He stressed the attractiveness of Bitcoin’s low correlation with traditional assets. “When agencies look at this, they focus on this correlation – whether it’s zero or at certain times, negative. Then the construction case of the portfolio is compelling for them,” he explained. “When you see it as a global scarce currency alternative with a range of risk and reward factors, correlation should prevail.”
When asked whether the crowded Bitcoin ETF market (now there are twelve products) needs to be merged, Mitchnick responded optimistically. “Many of them are very successful. Ibit is a leader with a considerable leeway, but it’s exciting to have such a demand…it’s a good thing.”
And Ethereum?
Mickey is more cautious about the topic of Ethereum and the upcoming Ishares eth ETF. “This is much more than we’ve seen at Ibit,” he said. “Institutional investment papers that come with Bitcoin as a growing global alternative are resonating with people. But when we talk about ether, there’s an exciting story out there, but more about technology. For many institutions, it’s a more difficult case than other technologies.”
Ultimately, Mitchnick formed a short-term marketing strategy for Blackrock, but instead gradually integrated Bitcoin into global portfolio theory. “Many of our clients are watching closely,” he said. “We think this is just the beginning of a multi-year journey and it will redefine asset allocations globally.”
As iBit continues to lead with traffic and performance (121% since its inception), blackrock’s position not only has a good position, which not only rides ETF waves, but also shapes its direction. “It’s still very early,” Mickey reiterated. “This story is far from over.”
At press time, BTC was trading at $109,625.
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