Latest news with #Mitchnick
Yahoo
22-03-2025
- Business
- Yahoo
Why 'Staking' Could Give Ethereum ETFs a Much-Needed Boost
Ethereum ETFs' struggles with outflows and price declines may be relieved if "staking," the cryptocurrency's validation mechanism which acts as a sort of yield device, were introduced, BlackRock Inc.'s (BLK) digital assets chief said this week. Ethereum spot exchange-traded funds have badly lagged their Bitcoin counterparts since being introduced in June, six months after spot Bitcoin ETFs began trading. The two largest, the Grayscale Ethereum Trust ETF (ETHE) and the iShares Ethereum Trust (ETHA), both with about $2.5 billion in assets, have plummeted 43% over the past three months while the largest spot Bitcoin fund, the iShares Bitcoin Trust (IBIT) has dropped 13%. Ethereum ETF investors' inability to earn a staking yield may be contributing to their outflows and falling prices, BlackRock's Robert Mitchnick said at the Digital Asset Summit on March 20 in New York, according to CNBC. Staking offers participants rewards in exchange for locking up their crypto for a period, and permitting that in the Ethereum ETF would stoke investor interest, he said. 'There's no question it's less perfect for ETH today without staking,' CNBC reported Mitchnick as saying. 'A staking yield is a meaningful part of how you can generate investment return in this space, and all the [ether] ETFs at launch did not have staking.' Mitchnick's comments come as efforts are underway to persuade the Securities and Exchange Commission to permit staking in Ethereum ETFs. Bitwise Asset Management and the New York Stock Exchange this week sought a rule change that would permit the Bitwise Ethereum Trust (ETHW) to offer staking rewards. Bitwise, which also manages the Bitwise Bitcoin ETF (BITB) among other crypto ETFs, in November bought London-based crypto firm Attestant to add staking services to its asset management services. Approximately $527 million has been pulled from the two biggest Ethereum ETFs over the past month. Source: data With around $7 billion in eight funds, Ethereum ETFs are dwarfed by the approximately $95 billion, according to Bloomberg, in the dozen or so spot Bitcoin ETFs. Bitcoin and Ethereum are the only cryptocurrencies permitted in spot ETFs, while other digital assets trade in futures | © Copyright 2025 All rights reserved
Yahoo
21-03-2025
- Business
- Yahoo
Why 'Staking' Could Give Ethereum ETFs a Much-Needed Boost
Ethereum ETFs' struggles with outflows and price declines may be relieved if "staking," the cryptocurrency's validation mechanism which acts as a sort of yield device, were introduced, BlackRock Inc.'s (BLK) digital assets chief said this week. Ethereum spot exchange-traded funds have badly lagged their Bitcoin counterparts since being introduced in June, six months after spot Bitcoin ETFs began trading. The two largest, the Grayscale Ethereum Trust ETF (ETHE) and the iShares Ethereum Trust (ETHA), both with about $2.5 billion in assets, have plummeted 43% over the past three months while the largest spot Bitcoin fund, the iShares Bitcoin Trust (IBIT) has dropped 13%. Ethereum ETF investors' inability to earn a staking yield may be contributing to their outflows and falling prices, BlackRock's Robert Mitchnick said at the Digital Asset Summit on March 20 in New York, according to CNBC. Staking offers participants rewards in exchange for locking up their crypto for a period, and permitting that in the Ethereum ETF would stoke investor interest, he said. 'There's no question it's less perfect for ETH today without staking,' CNBC reported Mitchnick as saying. 'A staking yield is a meaningful part of how you can generate investment return in this space, and all the [ether] ETFs at launch did not have staking.' Mitchnick's comments come as efforts are underway to persuade the Securities and Exchange Commission to permit staking in Ethereum ETFs. Bitwise Asset Management and the New York Stock Exchange this week sought a rule change that would permit the Bitwise Ethereum Trust (ETHW) to offer staking rewards. Bitwise, which also manages the Bitwise Bitcoin ETF (BITB) among other crypto ETFs, in November bought London-based crypto firm Attestant to add staking services to its asset management services. Approximately $527 million has been pulled from the two biggest Ethereum ETFs over the past month. Source: data With around $7 billion in eight funds, Ethereum ETFs are dwarfed by the approximately $95 billion, according to Bloomberg, in the dozen or so spot Bitcoin ETFs. Bitcoin and Ethereum are the only cryptocurrencies permitted in spot ETFs, while other digital assets trade in futures | © Copyright 2025 All rights reserved
Yahoo
19-03-2025
- Business
- Yahoo
Recession Would Be 'A Big Catalyst For Bitcoin,' BlackRock's Head Of Digital Assets Says
Robbie Mitchnick, Global Head of Digital Assets at BlackRock (NASDAQ:BLK), said a potential U.S. recession could act as a powerful driver for Bitcoin's (CRYPTO: BTC) next bull cycle, citing liquidity injections and fiscal responses as key catalysts. What Happened: Speaking with Yahoo Finance on Wednesday, Mitchnick explained that while Bitcoin has historically been perceived as "digital gold," recent price action has fallen short of this reputation. Despite some optimism following policy shifts in Washington, Bitcoin's performance has been subdued, currently hovering near $83,550 after giving back its late-2024 rally gains. "The crypto market may have gotten ahead of itself with expectations about how fast deregulation and other catalysts would arrive," Mitchnick said. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share! Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. He noted that while Bitcoin rose sharply into the end of 2024, the early part of 2025 has been marked by modest ETF outflows and cautious sentiment. Mitchnick argued that Bitcoin's fundamental characteristics—its scarcity, decentralization, and independence from traditional monetary systems—position it as a long-term hedge, especially during periods of economic stress. "A recession would be a big catalyst for Bitcoin," he said. "It's long liquidity, meaning it benefits from increased fiscal spending, deficit accumulation, and lower interest rates—all typical features of a recessionary environment." While gold has recently surged to record highs amid growing economic uncertainty, Bitcoin has struggled to mirror that trend. Mitchnick attributed this partially to short-term correlations and how the crypto market narrative has leaned into viewing Bitcoin as a "risk-on" asset. "There's a self-fulfilling element to how Bitcoin is being traded in the short term," he It Matters: He also discussed ETF market dynamics, highlighting that recent Bitcoin ETF outflows have been driven primarily by hedge funds unwinding spot-futures arbitrage trades. "The core long-term holders are still in," he explained, pointing to continued interest from institutional investors despite the volatile price action. Commenting on the Trump administration's establishment of a U.S. Strategic Bitcoin Reserve, Mitchnick said, "It's a strong signal of support for Bitcoin's uniqueness within the digital asset space, though the specifics of how the government might accumulate Bitcoin remain to be seen." While acknowledging market headwinds, Mitchnick emphasized that many professional investors see the current downturn as an opportunity. "Some of the most sophisticated Bitcoin accumulators we speak with are treating this dip as a buying opportunity," he added. Despite challenges facing the broader crypto industry—including recent hacks and concerns about regulatory clarity—Mitchnick remained optimistic about Bitcoin's long-term role as a portfolio hedge against economic instability. Read Next: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Recession Would Be 'A Big Catalyst For Bitcoin,' BlackRock's Head Of Digital Assets Says originally appeared on Sign in to access your portfolio
