Why BlackRock’s Ether ETFs Lag Behind Bitcoin ETFs: Insights from Digital Assets Head

A recent publication by Robert Mitchnick, head of digital assets at BlackRock, sheds light on the disparity between the performance of Ether-based ETFs and Bitcoin-based ETFs on the platform. In his statement, Mitchnick explained that the current underwhelming market conditions are not expected to improve anytime soon.

According to Mitchnick, the inflow volume for Ether-based ETFs has been lackluster due to investor hesitation towards Ether exposure. He attributed this reluctance to the complex nature of the investment framework, which makes it more challenging for investors to fully understand. However, Mitchnick emphasized that BlackRock is actively working to educate investors about the structure and benefits of these investments.

Despite the challenges, Mitchnick pointed out that Ethereum-based ETFs have not underperformed in absolute terms, but the difference is largely a matter of perspective. While Bitcoin ETFs have outpaced Ether ETFs in terms of volume and inflows on BlackRock’s platform, Ethereum ETFs have still performed better than many other ETFs.

He further highlighted that although there is a significant gap between Ether and Bitcoin ETFs, BlackRock’s Ethereum ETF achieved a major milestone, reaching $1 billion in inflows just a few months after its launch. This is notable, as several ETFs have failed to reach this milestone even after years of operation. In August this year, about a month after BlackRock’s Ethereum ETF (ETHA) began trading, it recorded $1 billion in inflows, a feat unmatched by any other Ether-based ETF at the time.

On the topic of BlackRock’s potential interest in launching other altcoin ETFs, Sarah Cohen, BlackRock’s chief information officer, stated that the company has no immediate plans to explore ETFs for other altcoins. This effectively rules out the possibility of a Solana ETF, a move that is seen as a logical step given the current underperformance of the Ethereum ETF.