BlackRock, the global head of digital assets, Robbie Mitchnick, is in the opinion that institutional crypto ETFs usage is still low. In a Crypto Prime podcast, he mentioned that even though products such as IBIT (Bitcoin) and ETHA (Ethereum) have achieved success, most advisors in the U.S. lack authority to offer these products to clients. Very few companies have incorporated crypto ETFs with a discretionary portfolio, and the model portfolios of BlackRock are (first) announced to include IBIT towards the beginning of 2025.
XRP and Solana Unconfirmed ETFs.
Mitchnick would not answer questions on whether BlackRock would launch ETFs tracking XRP or Solana. He stated that the company structure entails the evaluation of the client demand, product utility, and liquidity of the market and then moves on. New ETFs are speculative without adequate institutional interest and liquidity maturity.
Staking Capsules Put pressure on Ethereum ETFs.
Ether ETFs experience challenges because of staking limitations. Since existing ETF designs are incapable of staking (with an average of 3-4% APY) the demand is affected. As a justification that staking cannot yet be built into a regulated ETF product, Mitchnick cited complexity in taxes and lockups in liquidity, unlike Bitcoin which can be supported by an easier investment thesis as an investment in digital gold.
Stablecoins & Tokenization Prospect.
Mitchnick expressed the most positive expectations on tokenized money market funds, which would allow 24/7 access and maintain returns. Nevertheless, a lot of initial tokenization initiatives could not reach success because their value propositions were indistinct. On stablecoins, he has an opportunity to expand past crypto trading into cross-border payments and financial settlements.
