Robbie Mitchnick, the global head of BlackRock’s digital assets, believes institutional adoption of funds traded on crypto exchanges is still in its early stages.
In a September 25 interview with the Crypto Prime podcast, Mitchnick said that despite the success of products such as BlackRock’s Bitcoin (IBIT) and Ethereum (ETHA) ETF, the infiltration of the system has been far behind retail adoption.
He added:
“The vast majority of US advisors today do not yet have the ability to make decisions about this on behalf of their clients.”
Mitchnick said most asset management companies approved Crypto ETFs for run-only transactions, requiring clients to start purchasing on their own, not advisors.
A small number of cutting-edge companies have crossed this threshold, and BlackRock’s model portfolio team added their first IBIT allocation in early 2025.
New cryptographic ETFs are unconfirmed
Mitchnick also discussed the frameworks that BlackRock applied and decided to launch a new Crypto ETF. Client demand is the main driver, and asset managers assess the level of demand, the logic of investment, and the problems the product solves.
The next step is to assess liquidity and maturity, and BlackRock has made clear about investment papers and overall product and portfolio considerations.
When asked about Solana and potential ETFs tracking XRP, Mitchnick biased completely and would not comment on this issue.
Staking restrictions hinder Ethereum products
Ethereum ETF demand faces constraints due to the inability to provide staking rewards. This usually offers an annual yield of 3% to 4%. Mitchnick said there will be some impact on the demand for these products.
Staking integration includes complex tax and liquidity considerations within the grant trust structure used by crypto ETP. Stained Ethereum requires a period of bonding before it becomes freely tradeable, inconsistent with ETF liquidity requirements.
As a result, Mitchnick said Bitcoin is attracting wider institutional interest for its clearer positioning as “digital gold,” which acts as a portfolio dysphi similar to traditional gold allocations.
Ethereum, on the other hand, requires more nuanced discussion as a technology bet on blockchain adoption, similar to technology stocks or venture capital investments.
Tokenization and stubcoin outlook
BlackRock is seeing limited tokenization opportunities beyond money market funds. In this case, the technology creates a clear utility by enabling 24/7 liquidity while maintaining full access.
Mitchinick pointed out:
“Many early projects were just reliant on that high-level value props, which made them incredible.”
Finally, he said the company remains bullish on stubcoin, which is expanding beyond its current use in crypto transactions to include cross-border payments and financial market settlements.