99Bitcoins Exclusive: BlackRock’s Leader Of Digital Assets Declares “Inflow Is Significant Again” Regarding BTC ETFs

During a conversation on 30 April 2025 at Token2049 Abu Dhabi, Robert Mitchnick, the Head of Digital Assets at BlackRock, remarked on the trend of Bitcoin ETF purchases over the past 16 months. “Initially, it was largely retail investors. However, there are also two significant segments to consider: wealth advisory and institutional,” he noted.

Mitchnick expressed that typically, investors who have a positive outlook on BTC also tend to favor gold. “Bitcoin and gold resonate with similar worldviews,” he stated. He further mentioned that numerous investors have adjusted their portfolios, shifting from fully gold positions to a mixed gold-Bitcoin approach of 80/20 or 50/50, or even replacing their gold holdings entirely with BTC.

Regarding changes in crypto holder behavior and the evolving dynamics surrounding BTC ETFs and futures, Jan van Eck, CEO of VanEck, and Giovanni Vicioso, Global Head of Crypto asset Products at CME Group, shared their insights.

BTC ETF: Unprecedented Success in ETF Launches

Bloomberg analyst Eric Baluchnas initiated the discussion by sharing that Bitcoin ETFs have garnered over $40 billion in net inflows since their inception, marking BTC ETFs as the most successful ETF launch ever. “The inflows have returned significantly,” Mitchnick concurred. He further expressed curiosity about the purchasers of Bitcoin ETFs over the last 16 months. “In the beginning, it mostly comprised retail investors, but there are also two key sectors to account for, which include wealth advisory and institutional,” he clarified.

He also pointed out a consistent trend observed each quarter where the retail investment percentage declines while the institutional wealth advisory percentage increases.

Baluchnas progressed the conversation with data. “ETFs manage $10 trillion, with approximately 70% of that capital being overseen by advisors. Advisors cater to the majority of boomer assets, and boomers control substantial wealth,” he explained. He added that institutions, including pension plans, operate within a $100 trillion crypto market, which poses a greater challenge to penetrate, albeit some progress has been made. Yet, advisors’ assets remain the primary target audience for ETFs looking ahead.

Meanwhile, Van Eck acknowledged that although Bitcoin’s inflows have been commendable, they still fall short compared to gold’s $14 billion inflows into ETFs this year. “Bitcoin has yet to break into the significant investment sectors where considerable capital resides,” he remarked.

Moreover, traditional brokerages like Vanguard continue to limit access to Bitcoin ETFs, signaling that the broader adoption phase is still in its infancy. He elaborated that there is considerable ground to cover before most asset allocators integrate BTC ETFs into their portfolios.

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The Importance of Futures and Hedge Funds

Vicioso contributed his thoughts on the vital function of Bitcoin futures in paving the way for ETF approval. He noted that the market fluidity generated by the futures market aids in fostering price stability that allows ETF issuers to effectively buy and long-term holding BTC.

He stated that the success of the ETFs and spot markets is interconnected with the performance of futures, indicating, “If ETFs are thriving, it suggests that futures are performing well, which also implies that the spot trading market is in good shape.”

Furthermore, Baluchnas mentioned that hedge funds participate in basis trading, capitalizing on the price discrepancies between futures and spot BTC prices. Vicioso clarified that hedge funds acquire Bitcoin ETFs whilst shorting Bitcoin futures, thus securing the price spread.

The price differential has fluctuated. Initially, the basis was about 20% following the ETF launch, then it dropped to around 5% for a period before rebounding to 8-10%.

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Stability in BTC ETF Prices Due to Steadier Holders

A significant discussion point was Bitcoin’s stability during the recent “tariff tantrum,” where stock prices tumbled amid uncertainties in US trade policy. Traditionally, Bitcoin has acted like a “high beta” asset—intensifying stock fluctuations. Yet, during this recent decline, Bitcoin’s value remained comparatively stable alongside equities.

Balchunas suggested that this newfound stability can be attributed to an “upgrade” in the profile of holders. Bitcoin ownership has migrated from unreliable sellers (e.g., FTX, distressed sellers) to more stable long-term investors such as MicroStrategy’s Michael Saylor.

Mitchnick concurred, highlighting that Bitcoin’s inherent qualities as a decentralized and scarce asset position it as an appealing safe haven. After Bitcoin demonstrated even a single day of decoupled, safe-haven behavior, inflows into ETFs surged once more, signaling a pent-up demand for diversification assets.

Van Eck provided historical insights, noting that Bitcoin’s correlation with traditional assets was nearly nonexistent before 2020. However, following the COVID stimulus, the correlation to stocks increased to around 0.4—still low but meaningful for portfolio managers in search of genuine diversification.

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On ETH ETFs and the Wider Altcoin Market

Ethereum ETFs debuted with less fanfare than Bitcoin’s. Nonetheless, they captured significant inflows ($4B–$12B in a year). Often viewed as Bitcoin’s “silver,” ETH has encountered hurdles but demonstrated resilience. Altcoins such as Solana, XRP, and Litecoin are under scrutiny for their potential in futures trading market development, dependent on regulatory transparency.

Yet, institutions and advisors predominantly focus on Bitcoin, and to a lesser extent, ETH. General crypto investment is perceived more like technology venture capital rather than as a monetary strategy.

Balchunas concluded with a witty remark, “The further you strayed from BTC, the fewer assets you will find.” Mitchnick concurred, stating, “Overwhelmingly, the focus for both institutional and wealth advisory today remains on Bitcoin.”

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The article 99Bitcoins Exclusive: BlackRock’s Head Of Digital Assets Says “Flows Are Back In A Big Way” On Bitcoin ETFs first appeared on 99Bitcoins.