According to Robbie Mitchnick, the global head of digital assets at BlackRock, broader embrace of crypto exchange-traded funds by institutional investors is just beginning.
Speaking on the Crypto Prime podcast during a September 25 discussion, Mitchnick pointed out that despite the relative success of offerings such as BlackRock’s Bitcoin (IBIT) and Ethereum (ETHA) ETFs, institutional engagement hasn’t kept pace with retail interest.
He explained:
“The vast majority of financial advisors across the United States are still restricted from making investment choices involving these assets for their clients.”
Mitchnick noted that a significant portion of wealth management firms has authorized crypto ETFs for client-directed trades only, meaning clients must take the initiative to purchase shares, preventing advisors from strategically allocating them within portfolios.
A select few progressive firms have overcome this obstacle, as exemplified by BlackRock’s own model portfolio teams, which introduced IBIT allocations to their offerings earlier in 2025.
Future Crypto ETF Considerations
Mitchnick also clarified the process BlackRock uses when evaluating the potential launch of new crypto ETFs. Central to their decision-making is client demand, as the investment firm carefully analyzes the magnitude of interest, the soundness of the investment rationale, and the specific needs the potential product would fulfill.
Subsequent steps involve assessing liquidity and the stability of the underlying asset, ultimately allowing BlackRock to solidify its investment strategy and thoroughly consider product and portfolio implications.
When asked about the possibility of launching ETFs that track Solana and XRP, Mitchnick declined to comment directly, avoiding any confirmation or denial.
Staking Limitations Impact Ethereum ETF Appeal
The demand for Ethereum ETFs faces challenges because they currently can’t offer staking rewards, which typically yield around 3% to 4% annually. Mitchnick acknowledged that this absence has had a discernible effect on investor enthusiasm.
Integrating staking introduces complex tax and liquidity issues within the grantor trust structure utilized by crypto ETPs. Staked Ethereum requires an unbonding period before it can be freely traded, which is incompatible with the liquidity requirements of ETFs.
Consequently, Mitchnick believes that Bitcoin attracts wider institutional adoption due to its clearer identification as “digital gold,” serving as a portfolio diversifier analogous to traditional gold investments.
In contrast, Ethereum requires more in-depth explanations as a technology-driven investment in blockchain, bearing similarities to tech stocks or venture capital investments.
Tokenization and Stablecoin Perspectives
BlackRock sees limited opportunities for tokenization beyond the realm of money market funds, where the technology delivers tangible value through enabling round-the-clock liquidity while preserving full yield access.
Mitchnick cautioned:
“Many initial projects faltered because they leaned too heavily on that abstract value proposition.”
Finally, he stated that the company remains optimistic about the future of stablecoins, predicting their expansion beyond their current use in crypto trading to include cross-border transactions and financial market settlements.