BlackRock Exec Predicts Tidal Wave of Institutional Money Flooding Into Bitcoin ETFs ⋆ ZyCrypto
The post BlackRock Exec Predicts Tidal Wave of Institutional Money Flooding Into Bitcoin ETFs ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     Robert Mitchnick, head of digital assets at BlackRock, anticipates a new wave of investment into bitcoin ETFs, particularly from large financial entities such as sovereign wealth funds, pension funds, and endowment funds. Mitchnick’s prediction comes despite a recent pause following consistent inflows into spot bitcoin ETFs for 71 days. Regardless, the BlackRock exec suggested, “The current lull is likely to be followed by a new wave from a different type of investor.” In an interview, Mitchnick shared insights on the renewed dialogue around Bitcoin, saying, “Many of these interested firms – whether we’re talking about pensions, endowments, sovereign wealth funds, insurers, other asset managers, family offices – are having ongoing diligence and research conversations, and we’re playing a role from an education perspective.” BlackRock’s Strategic Expansion into Digital Assets: Spotlight on Bitcoin and Ethereum ETFs Since their approval earlier this year, spot bitcoin ETFs have seen significant interest, with over $76 billion accrued across these products. BlackRock’s bitcoin ETF, IBIT, has notably amassed $17.2 billion in assets. This compares to Grayscale’s Bitcoin Trust, now an ETF holding approximately $24.3 billion. The increase in IBIT’s assets is partly due to transfers from Grayscale’s product, shifts from higher-priced ETFs in Canada and Europe, and conversions from bitcoin futures ETFs. Advertisement   Nonetheless, Mitchnick emphasized that BlackRock is not solely focused on becoming the leading provider of spot bitcoin ETFs but prioritizes client education and comprehensive asset management. Moreover, the firm is expanding its digital asset initiatives, demonstrated by its recent application for an Ethereum ETF. This move follows CEO Larry Fink’s hyping of the transformative potential of tokenization, which represents “traditional assets on blockchains.” However, market experts argue that BlackRock’s potential introduction of an ether exchange-traded fund (ETF) prompts the need to educate clients about the Ethereum blockchain. Likewise,…
Filed under: News - @ May 21, 2024 7:20 am