BlackRock Limits Crypto ETFs to Bitcoin, Ethereum Amid Rising Demand
In Short
BlackRock, a leading asset management company, recently announced its decision not to introduce any new crypto ETFs beyond Bitcoin and Ethereum. This decision comes at a time when the demand for crypto ETFs, especially for Bitcoin [BTC] and Ethereum [ETH], has significantly increased. At the same time, Grayscale, another major player in the crypto ETF market, recorded substantial outflows from its respective products. What does BlackRock’s decision mean for the market and investors?
Insight into Recent Market Movements
On July 29, Grayscale experienced outflows of $210 million from its Ethereum ETF and $54.3 million from its Bitcoin ETF. In contrast, BlackRock was able to record significant inflows: $58.2 million flowed into the Ethereum ETF and $256.6 million into the Bitcoin ETF. Despite BlackRock’s impressive performance, the overall trend shows that Bitcoin ETFs recorded net inflows of $124.1 million, while ETH ETFs had to accept net outflows of $98.3 million.
BlackRock’s View on Ethereum ETFs
Samara Cohen, CIO of BlackRock ETF and Index Investments, emphasized the importance of early access and assessment of the health and activity of ETH ETFs through trading volume and fund flows in an interview. She pointed out that a significant portion of the trading volume of Ethereum ETFs – 25% – is driven by substantial outflows, which could be attributed to higher-priced ETH ETFs and other investment vehicles.
No Solana ETF in Sight
In a surprising twist, Cohen revealed that BlackRock has no plans to introduce additional crypto ETFs, including a spot Solana ETF, in the near future. She explained that while Bitcoin and Ethereum meet the company’s criteria for investment, other altcoins have not yet reached the necessary standards. This underscores BlackRock’s cautious approach to expanding its range of crypto ETFs, which focuses exclusively on the two most established cryptocurrencies.
Click here to follow our Telegram channel.
Our Assessment
BlackRock’s decision not to introduce new crypto ETFs beyond Bitcoin and Ethereum reflects strategic caution and a clear focus on established cryptocurrencies. This could strengthen confidence in crypto ETFs in the long term and promote their acceptance as fixed components in “model portfolios” by the end of 2024, as predicted by Samara Cohen. For investors, this means that they should direct their attention to the developments and performance of the existing Bitcoin and Ethereum ETFs, while keeping an eye on the slowly evolving landscape of crypto investments.
Sources: AMBCrypto Team, Ishika Kumari
You should read that too:
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 30 days to claim |
| 14 days to wager / 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Gates of Olympus or Book of Ra Deluxe.
| Wagering requirements | 40x bonus |
| 40x free spins winnings | |
| Minimum deposit | 0.0005 BTC |
| Maximum bet | 0.00004 BTC |
| Bonus validity | 30 days after registration |
| 14 days (1st), 7 days (2nd), 1 day (3rd) |
- To get the bonus, enter the bonus code before the deposit.
- Minimum deposit: 0,07 BCH • 0,4 LTC • 233 DOG • 45 XRP • 0,01 ETH • 20 USDT • 69 ADA • 0,05 BNB • 184 TRX • 20 USDC.
- Maximum bet: 0.007 BCH • 0.0009 ETH • 0.04 LTC • 23 DOGE • 2 USDT • 4 XRP • 18 TRX • 7 ADA • 0.005 BNB • 2 USDC • 2 EUR • 2 USD.
- Free spins are provided in batches of 25 per day.
- Free spins are credited on the Gamebeat slots: Max Miner (1st), Book of Elixir (2nd) and Odin’s Tree (3rd).
| Wagering requirements | 40x bonus |
| Minimum deposit | 0,1 mBTC |
| Maximum bet | $5 per spin |
| Bonus validity | 7 days to wager |
- There is no cap on winnings or withdrawals.
Advertising transparency