BlackRock manager considers further crypto ETFs unlikely

BlackRock's Bitcoin ETF has been a great success, the ETH exchange-traded product launched this week. However, further crypto ETFs will not be forthcoming.

On the main stage of the largest Bitcoin-conference in the world in Nashville spoke the chief for digital assets at BlackRock, Robert Mitchnick.

Earlier this week, trading began in BlackRock's new Ethereum Spot ETF (ETHA). With net inflows of as much as $363 million, BlackRock's product is the market leader after Grayscale.

The Bitcoin ETF of the world's largest asset manager (IBIT) is also doing well and is now among the most successful ETFs worldwide. Since its trading launch, about $19.7 billion flowed into the Bitcoin exchange product.

Further listed crypto ETFs, for example, for Solana or Polygon's MATIC, are unlikely to come. "I don't believe we will see a long list of crypto ETFs," Mitchnick said in conversation with Bloomberg analyst James Seyffart.

Bitcoin makes up 55% of the market capitalization, ETH is at 16%. SOL and BNB are at 3% each, respectively. For BlackRock, that's probably too little: "It's just not anywhere near this threshold or this level of success in terms of maturity, liquidity and so on," Mitchnick said.

Moreover, the Securities and Exchange Commission will draw boundaries somewhere. According to the BlackRock executive, the SEC is unlikely to approve an Ethereum Spot ETF with a staking option. Although Ethereum fell sharply at the trading launch of the ETFs - as did Bitcoin - the exchange products could herald a new all-time high for the second largest crypto.

How realistic crypto experts Matthew Sigel and Max Shannon deem a Solana ETF to be and what hurdles stand in the way, read here: What to do for a Solana Spot ETF.