Most Bitcoin ETF investors take steady approach despite market volatility
BlackRock’s digital assets chief Robert Mitchnick shared some interesting data about Bitcoin ETF investor behavior. According to his comments to CNBC, more than 90% of investors in these funds—including retail investors, financial advisors, and institutions—have followed what he calls a “steady accumulation strategy.”
That’s a pretty significant number when you think about it. It suggests that despite all the volatility and noise around cryptocurrency markets, the majority of people using these new ETF products aren’t trying to time the market or make quick trades. They’re just buying and holding, perhaps adding more when prices dip.
Hedge funds represent the tactical minority
Mitchnick did note there’s one group that behaves differently. About 10% of the investor base consists of hedge funds, and these investors tend to be more tactical. They use strategies like basis trades—going long on spot ETFs while shorting futures contracts. These trades are generally market-neutral, but they can create temporary inflows or outflows in the ETF data that might look like something else is happening.
“The only part of the demand base where we do see some tendency towards short-termism is the roughly 10 or so percent that is actually comprised of hedge funds,” Mitchnick explained. This distinction is important because it shows that different types of investors are using these products for different purposes.
Steady accumulation despite price declines
What’s perhaps most surprising is that this accumulation has continued even as Bitcoin prices have declined. BlackRock’s iShares Bitcoin Trust (IBIT) ranked among the top ETF inflows globally in 2025, drawing about $26 billion and placing fourth worldwide by inflows. That happened even as the asset itself posted negative returns.
“There’s clearly been a lot of selling pressure elsewhere in the Bitcoin ecosystem, on crypto exchanges, on these offshore levered perps platforms,” Mitchnick observed. “But the ETF investor base has taken a much steadier, longer-term fundamental view of things.”
I think this tells us something about how traditional finance investors approach cryptocurrency differently than the typical crypto exchange user. The ETF structure seems to attract people who want exposure without necessarily engaging with the more complex aspects of the crypto ecosystem.
Bitcoin and Ethereum dominate demand
Mitchnick also commented on broader crypto asset demand, noting that interest remains overwhelmingly concentrated on Bitcoin and Ethereum. While BlackRock sees some interest in other crypto assets, the company takes what he called “a very discerning approach” to expanding its crypto offerings.
“We continue to evaluate those as conditions evolve and as maturity, liquidity scale, and use cases develop,” he said. This cautious approach makes sense given the regulatory environment and the fact that these are relatively new investment products for mainstream finance.
Staking changes Ethereum ETF economics
The article also mentioned BlackRock’s new staking-enabled Ether ETF, ETHB, which launched recently. This is interesting because earlier Ethereum ETFs didn’t capture staking rewards, meaning investors couldn’t participate in the network’s native yield. The new structure addresses that limitation, adding an income component that many portfolio allocators view as meaningful.
Despite the constraint of not having staking initially, BlackRock’s flagship Ethereum ETF (ETHA) became the third-fastest ETF ever to reach $10 billion in assets under management. With staking yield now incorporated, the firm expects ETHB to become a dominant vehicle for Ether exposure.
Mitchnick called the fund a “near-silver bullet” for investors seeking convenient exposure. That might sound like marketing language, but the $43 million in net inflows on its trading debut suggests there’s genuine interest.
Looking at all this data together, I’m struck by how traditional finance approaches to cryptocurrency are developing their own patterns and behaviors. The ETF structure seems to be creating a different kind of crypto investor—one who’s less focused on short-term trading and more interested in long-term accumulation. Whether this changes the broader crypto market dynamics remains to be seen, but it’s certainly creating new pathways for mainstream adoption.
