In a revealing interview with CNBC, Robert Mitchnick, BlackRock’s head of digital assets, shared compelling insights into the behavior of investors in the firm’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT). His analysis points to a remarkably disciplined investor base, with over 90% of holders—spanning retail individuals, financial advisors, and institutions—adopting a consistent, long-term accumulation strategy regardless of market volatility.
Mitchnick contrasted this steadfast approach with the activity of a smaller cohort. “Retail investors are some of the most long-term focused,” he stated, noting their tendency to “buy the dip” during price declines. The segment exhibiting more short-term trading, he explained, comprises approximately 10% of the demand, primarily hedge funds. These entities engage in tactical, often market-neutral strategies like basis trades (simultaneously going long on the spot ETF and shorting futures), which can create transient inflows or outflows that may obscure the underlying steady demand.
“But the other kind of 90 plus percent of the investor base have tended to be very steady and have been on an accumulation path pretty consistently,” Mitchnick emphasized. This conviction was evident in 2025 data; despite Bitcoin’s negative performance for the year, IBIT attracted approximately $26 billion in net inflows, ranking as the fourth-largest ETF globally by that metric. Mitchnick attributed this resilience to a fundamental divergence: while selling pressure mounted on crypto exchanges and leveraged derivatives platforms, ETF investors maintained a longer-term perspective.
Bitcoin and Ether Remain the Cornerstones of Crypto ETF Demand
Mitchnick reinforced that investor appetite within the regulated ETF wrapper remains heavily concentrated on the two largest crypto assets by market capitalization: Bitcoin and Ethereum. While BlackRock monitors interest in other digital assets, the firm applies a stringent filter for product development. “We continue to evaluate those as conditions evolve and as maturity, liquidity scale, and use cases develop,” he said, signaling a cautious, deliberate approach to expanding beyond the market leaders.
Staking Yield Transforms the Ether ETF Landscape
The recent launch of BlackRock’s staking-enabled Ether ETF, ETHB, marks a significant evolution in the crypto ETF space. The fund debuted with over $43 million in net inflows, according to data from Farside Investors. Unlike previous Ether ETFs, which forgo participation in Ethereum’s network staking rewards, ETHB’s structure allows investors to capture the native yield generated by securing the network.
This income component is a pivotal addition. Mitchnick described the fund as a “near-silver bullet for investors seeking convenient exposure,” addressing a key limitation of earlier Ether ETFs. The yield element is expected to enhance the product’s appeal for traditional portfolio allocators and could help narrow the persistent adoption gap between Bitcoin and Ether ETFs.
Evidence of strong underlying demand for Ether is already clear. BlackRock’s flagship Ether ETF, ETHA (which does not include staking), achieved a milestone by becoming the third-fastest ETF ever to reach $10 billion in assets under management, trailing only IBIT and FBTC. With staking yield now integrated, BlackRock anticipates ETHB will become the dominant vehicle for institutional and retail Ether exposure within the ETF ecosystem.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy. Flow data referenced is sourced from public filings and Farside Investors. Performance rankings are based on total net inflows for the 2025 calendar year to date as of the date of the CNBC interview.
