Robert Mitchnick, head of digital assets at BlackRock, the world's largest asset management company, said at the Bitcoin 2024 conference that the launch of the Ethereum spot ETF is unlikely to open the door to other crypto asset funds, nor will the U.S. Securities and Exchange Commission (SEC) An Ethereum spot ETF with a staking component is likely to be approved.
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ToggleEthereum ETF unlikely to open doors for other cryptocurrencies
According to a report by The Block , Robert Mitchnick, the head of digital assets at BlackRock, the world’s largest asset management company, talked with Bloomberg analyst James Seyffart at the Bitcoin 2024 conference. He mentioned the launch of Bitcoin and Ethereum this year. Square spot ETF:
Bitcoin accounts for approximately 55% of the market capitalization. ETH is 18%. The next reasonable amount of investable assets is probably 3%. It's just nowhere near reaching that threshold or record of maturity, liquidity, etc.
That is to say, cryptocurrencies as an asset class will not disappear, but the launch of Bitcoin and Ethereum spot ETFs is unlikely to open the door to funds for other crypto assets.
Mitchnick believes that Bitcoin is trying to become a global currency alternative and a potential global payment system, while Ethereum is more suitable as a technology platform for building novel applications. The two do not replace each other. He also commented that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve an Ethereum spot ETF with a staking component .
Bitcoin is an independent risk asset and is currently only in its early stages
Mitchnick mentioned that a typical investor in BlackRock's Bitcoin ETF IBIT will usually allocate 2% to 3% of their funds to IBIT, which still has growth potential. Bitcoin is a fundamentally different asset type than stocks, fixed income, or other traditional assets, and has a different value proposition that the company’s client base, which ranges from retail to ultra-high net worth, is only beginning to realize, and These customers are increasingly interested.
Mitchnick is particularly bullish on interest from wealth advisors and institutions, both of which currently represent a minority of IBIT investors.
This is a longer journey and it’s still in the “early” stages. We are starting to see a shift towards people seeing Bitcoin as a potential safe haven.
Bitcoin is an independently risky asset in its own right, but these risks are related to uncertainty about future adoption, regulation, and the development of an ecosystem that is still in its early stages. They are very different from risk factors in the traditional financial world such as banking crises or geopolitical chaos or inflation, deficits, debt, currency devaluation, etc.
