Compared to its extremely successful Bitcoin ETF, the iShares Ethereum Trust ETF has underperformed.
Robert Mitchnick, the director of digital assets at BlackRock, addressed the Messari Mainnet conference in New York regarding the relatively subpar performance of the iShares Ethereum Trust ETF (ETHA).
Mitchnick observed that the iShares Ethereum Trust ETF has not experienced the same level of exponential growth as its Bitcoin counterpart, but it has still achieved a significant milestone. In the seven weeks since its inception in July, ETHA has amassed $1 billion in assets.
He also noted that the rate of growth and expansion of the ETF is slower than that of Bitcoin’s ETF, but it is still noteworthy within the broader ETF market, as it typically requires several years to achieve such a figure.
Within a mere 15 days, BlackRock’s Bitcoin ETF, IBIT, experienced an extraordinary launch, accumulating $2 billion in AUM. IBIT currently has $24 billion in AUM, which is significantly higher than ETHA, which is still at or near $1 billion.
He partially attributed this to the intricacy of the investment narrative that encircles Ethereum. Mitchnick underscored that Ethereum’s applications are perceived as more discreet, while Bitcoin is perceived as more comprehensible by a significant number of investors. Nevertheless, BlackRock is dedicated to ensuring that its clients comprehend the potential of Ethereum and genuinely believe that it should be a valuable addition to investor portfolios.
Mitchnick is of the opinion that Bitcoin and Ethereum are mutually beneficial, despite the disparity in growth. He stated that a significant number of investors could allocate 20% of their capital to Ethereum and 80% to Bitcoin.
Meanwhile, BlackRock is collaborating with other prominent asset managers, including Fidelity and ARK Invest, to become a leader in the development of cryptocurrency exchange-traded funds (ETFs). Ethereum ETFs have amassed approximately $7 billion in new assets since their inception, whereas Bitcoin ETFs have amassed $61 billion in new assets as an asset class.
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