ETHA reached $1 billion in assets under management, but has not seen explosive growth compared to IBIT.
BlackRock's bitcoin ETF quickly reached $2 billion in assets under management, surpassing ETHA.
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BlackRock's ethereum spot ETF, also known as ETHA, has seen slower growth than its bitcoin counterpart, but Robert Mitchnick, the company's head of digital assets, remains optimistic about its long-term prospects, especially considering its rapid accumulation of assets under management (AUM). .
“It is very rare for an ETF to reach 1 billion AUM in seven weeks, like ETHA did.” crypto/2024/09/30/blackrock-exec-says-new-ethereum-etf-faces-narrative-challenge/” target=”_blank” rel=”noopener nofollow noreferrer”>saying Mitchnick, speaking at the Messari Mainnet conference in New York this week. “In most cases, it takes several years for a new ETF to never reach $1 billion.”
Launched in July following surprising SEC approval, it took less than a month for ETHA to reach $1 billion in net inflows. As of September 30, ETHA's ethereum holdings exceeded 380,601 eth, valued at around $1 billion.
Despite trailing BlackRock's Spot bitcoin ETF (IBIT), which amassed $2 billion in assets under management in just 15 days of its launch, ETHA remains among the world's best-performing cryptocurrency ETFs .
The stagnant performance is not entirely unexpected for BlackRock and other ETF experts. Mitchnick believes ethereum's history and investment narrative is “less easy” for investors to “digest.”
“That's a big part of the reason we're so committed to the educational journey we're on with many of our clients,” he explained.
BlackRock's head of digital assets said he didn't expect ETHA to ever reach the same level of flows and AUM as IBIT, but called the current performance a “good start.”
Speaking at the bitcoin 2024 convention in Nashville in July, Mitchnick said the company's customer base is primarily interested in bitcoin, followed by ethereum. There is “very little” He noted that the demand for crypto ETFs goes beyond the two major crypto assets.
For BlackRock, bitcoin and ethereum offer complementary benefits, rather than competing for the same role. Mitchnick predicted that investors would allocate 20% of their cryptocurrency holdings to ethereum and the remaining 80% to bitcoin.
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