- ETHA lags behind IBIT in AUM growth due to Ethereum’s complex investment narrative.
- BlackRock’s IBIT thrives with $24B in AUM, while ETHA holds around $1B.
- Bitcoin’s long-term correlation with stocks remains zero despite short-term fluctuations.
BlackRock’s Ethereum ETF, ETHA, is significantly underperforming compared to its Bitcoin ETF, IBIT. Robert Mitchnick, BlackRock’s head of digital assets, acknowledged this at the Messari Mainnet conference in New York. He attributed ETHA’s slower asset growth to the more complex investment narrative surrounding Ethereum.
Launched in July, ETHA reached $1 billion in assets under management (AUM) in about a month, a stark contrast to IBIT’s rapid accumulation of $2 billion within 15 days of its January launch. Currently, IBIT boasts $24 billion in assets, while ETHA remains at around $1 billion.
Mitchnick said that while ETHA’s slower growth may seem disappointing compared to IBIT, the overall ETF performance tells a different story.
Spot Bitcoin and Ether ETFs: Industry Overview
Since the SEC approved spot Bitcoin ETFs in January, these products have reached $61 billion in total assets. BlackRock, Fidelity, and ARK Invest have led this boom, with BlackRock’s IBIT in the lead.
Read also: BlackRock’s Bitcoin ETF (IBIT) Breaks Records as Larry Fink Eyed for Treasury Secretary
The SEC has also approved nine spot Ether ETFs, with BlackRock, Fidelity, Bitwise, and Invesco launching their own funds. These Ether ETFs have acquired around $7 billion in assets.
Bitcoin as a Risk-Off Asset
Mitchnick also expressed concern that Bitcoin’s reputation as a risk-off asset is changing. While many see Bitcoin as a risk-on investment, closely linked to equities, he argued that unique factors influence its price. He emphasized that Bitcoin’s long-term connection with stocks is near zero despite short-term fluctuations.
Mitchnick also discussed BlackRock’s recent approval to offer options for their Bitcoin ETF, IBIT, stating that this would give investors more flexibility to trade and hedge risks.
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