BlackRock Focuses on Bitcoin and Ethereum, Postponing Altcoin ETFs

• BlackRock prioritizes Bitcoin and Ethereum ETFs
• Expansion of IBIT and ETHA reflects institutional appetite
• Regulation could boost altcoin ETFs by 2025

BlackRock, the world’s largest asset manager, has decided to prioritize its Bitcoin (BTC) and Ethereum (ETH) initiatives, postponing the introduction of new altcoin-based ETFs. The decision was revealed by the company’s head of ETFs, Jay Jacobs, highlighting the strategy of focusing efforts on existing funds, IBIT and ETHA, which have shown significant performance in 2023.

Jay Jacobs, head of BlackRock's ETF department, said that currently Bitcoin and Ethereum ETFs only reach a few people, and the company will focus on expanding the coverage of these two types of ETFs rather than launching new altcoin ETFs. It is currently expected that the United…

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Jacobs said that only a small portion of BlackRock’s clients own the IBIT and ETHA ETFs, reinforcing the intention to broaden the adoption of these products before considering new launches. According to him, “we are just getting started with Bitcoin and especially Ethereum. The priority is to expand these offerings rather than launching altcoin ETFs.”

The firm’s Bitcoin and Ethereum ETFs have achieved significant milestones. IBIT surpassed the combined volume of more than 50 European funds, while ETHA reached the $1 billion mark in assets under management in just two months. These results reflect the growing appetite of institutional investors for these crypto assets.

BlackRock’s caution on altcoins like Solana (SOL) and XRP is explained by concerns about market maturity and liquidity. The firm’s head of digital assets, Robert Mitchnick, stressed that smaller crypto assets do not reach the necessary levels of stability and adoption to justify dedicated ETFs.

However, industry analysts suggest that regulatory changes in the United States could pave the way for altcoin ETF approvals by the end of 2025. This outlook depends on regulatory clarity and market demand.

At the time of publication, the price of Bitcoin was quoted at US$101.257 with a drop of 0.4% in the last 24 hours.

As competitors explore new crypto products, BlackRock’s strategic approach positions its Bitcoin and Ethereum ETFs as industry leaders. The firm continues to influence the future of institutional crypto investment.