During the recent “ETFs in Depth” event, BlackRock announced it is focusing on flagship cryptocurrency exchange-traded funds (ETFs). The company attributed its reasons for focusing on Bitcoin and Ethereum ETFs to limited market exposure.
Bloomberg ETF analyst Eric Balchunas quoted Jay Jacobs, Head of Thematic and Active Equity ETFs at BlackRock, speaking about the untapped potential of Bitcoin and Ethereum during the event.
“We’re really just at the tip of the iceberg with Bitcoin and especially Ethereum,” Jacobs remarked.
He further noted that only a small fraction of BlackRock’s clients currently own the firm’s Bitcoin and Ethereum ETFs, so the company will commit to expanding the reach of these products rather than introducing new altcoin-focused ETFs.
BlackRock’s impact on the spot Bitcoin ETF market remains well-documented, and its presence in the Ethereum ETF market is steadily growing. The BlackRock iShares Ethereum ETF (ETHA), launched on November 29, has attracted net inflows exceeding $1.3 billion in just ten trading days.
📢 JUST IN: BlackRock's #Ethereum ETF has exceeded $3 billion in inflows, expert forecast ETH price increase to $15,000! 🚀 pic.twitter.com/jQq7MTamWd
— Ethprofit.eth 🦇🔊 (@Ethprofit) December 13, 2024
Cumulatively, the fund has garnered an impressive $3.19 billion since its inception, bringing total net assets to $3.81 billion.
ETF crypto adoption is growing
During the discussion, Mike Venuto, Chief Investment Officer at Tidal, also weighed in on the increasing interest in innovative ETF strategies involving Bitcoin.
“We have people coming to us all the time trying to pitch ‘Bitcoin + something else’ ETFs,” Venuto shared. “You’re not diversified unless there are things in your portfolio that you hate,” he added.
The Tidal CIO predicted that the integration of crypto assets with traditional market giants like Nvidia, Tesla, and MicroStrategy in ETF offerings is inevitable. “Every options strategy you can think of is going to be tied to Bitcoin, Nvidia, Tesla, and MicroStrategy in ETFs. It’s coming.”
Bloomberg ETF analyst Balchunas noted that ETF assets grew by 32% globally in 2024, with Bitcoin ETFs making up about 2% of the figure.
Here you go: ETFs grew by $3.7T in 2024. Bitcoin ETFs were about 2% of that number. On one hand, amazing for new category. On the other, pretty tiny esp relative to the attn they get, shows just how damn big the asset class universe is https://t.co/iPGfpew6nW
— Eric Balchunas (@EricBalchunas) December 12, 2024
He said Bitcoin ETF growth is amazing but acknowledged it was “quite little” given the attention crypto products receive, demonstrating how “big” the asset class universe is.
BlackRock ETH ETF inflows hit records
Meanwhile, as BlackRock’s ETHA leads the charge in breaking records, other Ethereum ETFs are also driving the Ethereum ETF market forward. Several market data trackers show Grayscale’s Mini Ether ETF (ETH) and Fidelity’s FETH have also seen substantial inflows, recording $603 million and $1.37 billion, respectively, since their launch.
Collectively, all Ether ETFs have attracted $2.24 billion in inflows since their debut in late July. This surge comes despite major outflows from the Grayscale Ethereum Trust (ETHE), which saw withdrawals totaling $3.5 billion during the same period.
The ETH ETFs are on an absolute heater 💰
— TylerD 🧙♂️ (@Tyler_Did_It) December 13, 2024
$2B in new inflows over the last 10 sessions
The boomers are buying, and big… pic.twitter.com/iyOuEsTjZH
The overall inflow into Ethereum ETFs reflects a growing appetite for the product, which could be fueled by regulatory optimism surrounding Donald Trump’s administration. On the pricing front, Ethereum’s value remains a focal point for market participants. The cryptocurrency briefly climbed to $4,000 on Thursday before facing resistance.
As of the time of writing, Ethereum is trading at $3,922, down 1.04% on the day, with a market capitalization of $471 billion, per Coinmarket cap data. Despite this short-term pullback, analysts remain bullish on Ethereum’s long-term prospects.
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