BlackRock‘s recently launched Ethereum ETF (NASDAQ:ETHA) is seeing significantly lower volume and inflows compared to its Bitcoin counterpart. The company’s head of digital assets, Robert Mitchnick, doesn’t anticipate that gap closing anytime soon.
What Happened: Speaking at the Messari Mainnet conference in New York, Mitchnick acknowledged that ETHA’s performance has been “underwhelming” relative to BlackRock’s Bitcoin ETF, Fortune reported.
However, he urged investors to maintain perspective.
“It’s very rare that you see an ETF get to a billion AUM in seven weeks, as ETHA did,” Mitchnick noted. “In most cases, it takes multiple years to never for a new ETF to get to a billion.”
While the Bitcoin ETF skyrocketed to $2 billion in assets under management (AUM) within 15 days of its launch in January, ETHA took a more modest path, hitting around $1 billion within a month of its debut in July.
Today, BlackRock’s Bitcoin ETF, known as (NASDAQ:IBIT), boasts $24 billion in AUM, while (NASDAQ:ETHA) lingers at roughly $1 billion.
Mitchnick attributed the difference to the varying investment narratives between Bitcoin and Ethereum.
“With ETH, I think the investment story and narrative is a bit less easy for a lot of investors to digest, so that’s a big part of why we’re …
Full story available on Benzinga.com