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Robert Mitchnick, Head of Digital Assets at BlackRock, has described the rapid ascent of the iShares Bitcoin Trust (IBIT) as merely the start of a much longer journey for institutional adoption of Bitcoin ETFs.
Speaking to Bloomberg’s ETF IQ on 9 June, Mitchnick said, “There has been nothing like this,” referencing IBIT’s unprecedented growth. The ETF reached $70 billion in assets under management (AUM) in just 341 days, a record-breaking feat compared to the previous fastest, SPDR Gold Shares (GLD), which took 1,691 days to hit the same milestone. “Just ridiculous numbers here,” commented Bloomberg’s Eric Balchunas.
Mitchnick attributed the historic inflows to a confluence of factors, stating, “It is a lot of things coming together. You don’t get a chart like that without a confluence of actors all occurring at the same time.” He explained that initial demand came from retail investors, ranging from small holders to ultra-high-net-worth individuals. “Now, more recently, we have seen steady progress of more wealth advisor adoption, more institutional adoption,” he added.
Despite IBIT’s dominance, Mitchnick emphasized that institutional penetration remains limited. “Very early,” he said when asked about the extent of wealth advisor adoption. “What we have seen is a concerted effort by most of the largest firms to progress through their diligence and research and approval process… You’ve seen that fast-tracked by a number of firms. We’re talking by quarters, not months.” He noted that the approval process for new ETFs within traditional asset management can involve multi-year workflows, but that recent months have seen an acceleration, with more notable firms lowering barriers and granting approval for advisors to use these products.
Mitchnick also highlighted Bitcoin’s appeal to institutions, noting its low correlation with traditional assets. “When institutions are looking at this, they are heavily focused on that correlation—whether it is zero or, even in some periods, negative. Then the portfolio construction case is compelling to them,” he said. “When you look at this as a global scarce emerging monetary alternative with a whole set of risk and return factors, that correlation is what should prevail.”
On the subject of Ethereum and BlackRock’s forthcoming iShares ETH ETF, Mitchnick was more circumspect. “It is a little more of a retail-concentrated investor base than we have seen with IBIT,” he said. “The institutional investment thesis with Bitcoin as a growing global alternative is resonating quite strongly. But when we talk about Ether, there is an exciting story there, but it is more about a technology story. That is a much harder case for a lot of institutions to underwrite, especially compared to other technology things.”
Mitchnick concluded that BlackRock’s digital asset strategy is not a short-term marketing play, but a gradual integration of Bitcoin into global portfolio theory. “Many of our clients are watching closely,” he said. “We believe this is just the beginning of a multi-year journey that will redefine asset allocation globally.”
IBIT’s rapid growth has been widely noted across the industry. ETF analyst Eric Balchunas observed, “IBIT just blew through $70b and is now the fastest ETF to ever hit that mark in only 341 days.” IBIT currently holds 662,571 Bitcoin, making BlackRock the largest institutional holder of Bitcoin, ahead of Binance and MicroStrategy.
Recent 13-F filings with the US SEC for Q1 2025 have shown increased exposure from wealth advisors and institutions, including Goldman Sachs and Abu Dhabi’s Mubadala, towards Bitcoin spot ETFs. According to Mitchnick, “It is still volatile, but at the same time, its risk and return drivers are markedly different from most of the rest of the assets in a traditional portfolio, and that’s important.”
Industry voices have weighed in on the phenomenon. Blockstream CEO Adam Back commented, “You have to have some empathy for the people who want to buy Bitcoin, but they don’t know how to do it, and it’s too complicated.” He added, “You also don’t really want 90% of it in ETFs or something because that might start to become a problem.”
As of the latest data, IBIT shares are trading near $62, having delivered returns of around 150% since the fund’s launch in January 2024. The ETF’s total historical net inflow now stands at $49.11 billion, with BlackRock’s IBIT continuing to lead the sector in both flows and performance.
