BlackRock's head of digital assets Robert Mitchnick told CNBC that Bitcoin and Ethereum remain the only two cryptocurrencies attracting meaningful investor demand. His remarks came after the launch of BlackRock's ETHB staked ether ETF.
Bitcoin and Ethereum Dominate Allocation Decisions
Mitchnick said Bitcoin commands roughly 60% of the crypto market share while Ethereum holds the low teens. He described Bitcoin as a 'digital gold emerging monetary alternative' and Ethereum as 'a technology centric bet around blockchain innovation and the use cases of ether and digital assets.' The distinction shapes how investors approach portfolio allocations, with ether exposure aligning more closely with technology and venture equity.
Despite Bitcoin falling nearly 50% from its October all-time high, BlackRock's IBIT Bitcoin ETF recorded $26 billion in inflows during 2025. IBIT ranked fourth globally for ETF inflows last year, becoming the only product in the top 20 to post positive flows while delivering negative price returns. Year-to-date flows remain slightly positive, with approximately 90% of the investor base steadily accumulating through the drawdown.
Staking Ethereum ETF Fills Yield Gap
The newly launched ETHB adds staking yield to spot ether exposure, addressing what Mitchnick called a 'limitation' in original ether ETF products that lacked yield capture mechanisms. He said the staking feature makes ETHB 'much closer, like the Bitcoin ETPs were, to a silver bullet for a lot of investors.' BlackRock's other ether ETF, ETHA, became the third-fastest ETF in history to reach $10 billion in assets under management, trailing only IBIT and Fidelity's FBTC.
Investor Profile and Institutional Approach
Retail investors and financial advisors make up the majority of ETF demand, both showing opportunistic buying during price declines. Hedge funds account for roughly 10% of flows, primarily running basis trades that go long ETFs while shorting futures — neutral for Bitcoin's price but volatile when basis spreads compress. Mitchnick noted BlackRock sees 'pockets of interest' in other crypto assets but maintains a 'discerning approach' to product expansion, evaluating assets as liquidity, scale, and use cases develop. 'Bitcoin and Ethereum remain where investor interest concentrates overwhelmingly,' he said.