According to the head of digital assets at BlackRock, Bitcoin has emerged as the overwhelming favorite cryptocurrency for the company’s clients.
He added that after Bitcoin, clients have shown preference for Ethereum and a little bit of everything else.
Meanwhile, the asset management firm’s spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT), has managed to accumulate 243,000 BTC tokens since it was launched in January.
Client demand
Robert Mitchnick, the head of digital assets at BlackRock, shed light on Bitcoin and the demand for the spot Bitcoin ETF that was launched on January 11th, after receiving approval from the SEC.
In a fireside chat on Friday in New York City on Bitcoin Investor Day, Mitchnick disclosed that Bitcoin was the most favored crypto token by the company’s clientele.
He stated that for BlackRock’s clients, Bitcoin proved to be the number one priority, after which they preferred Ethereum and a little bit of the rest of the tokens.
This is reflected in the growth of BTC holdings of the IBIT fund since its launch. The latest data shows that a total of 242,830 BTC tokens have been accumulated so far.
The monetary value of these tokens is around $15.8 billion. Bitmex Research showed that on Friday, IBIT expanded its holdings by 297.5 BTC. Therefore, their total holdings surpassed the 243,000 mark.
Bitcoin and crypto
In an interview at the event, Mitchnick talked about the asset management company’s broader approach to Bitcoin and crypto.
He said that it had been a multi-year journey that began back in 2016 and their strategy had continued to evolve until it brought them where they are today.
He also noted that all clients of the company were at different stages of the journey and added that some of them already held bitcoins and others had positions in different crypto assets.
He went on to say that the clients were interested in their viewpoint regarding market dynamics and portfolio construction.
He also shared that some clients are still new to the crypto world and they are interested in understanding the technology and the fundamentals.
IBIT
The head of digital assets was also questioned about what the company’s clients were saying and he disclosed that most of them were interested in IBIT because it provides access to Bitcoin.
He said that these include investors who are new to Bitcoin, along with those who had held Bitcoin in other forms before.
He went on to say that their clients were mostly focused on trying to understand the risks, along with the downsides and upsides.
They are also looking into portfolio construction and looking into a diversified portfolio for managing the risks, making these topics the focus of discussions.
BlackRock’s IBIT spot Bitcoin ETF has proven to be immensely popular in the market, as it has recorded the highest number of inflows since its launch with several other products from other companies.