BlackRock Calls Altcoin ETFs ‘Worthless,’ Focuses on BTC & ETH

Published: 2025-11-11 20:06:02 |

BlackRock has dismissed altcoin ETFs as ’totally worthless,’ according to its Head of Digital Assets Robert Mitchnick. Investors eyeing altcoin ETFs should note BlackRock’s stance underscores the risk of diversifying beyond its Bitcoin and Ethereum ETF offerings. As of November 2025, BlackRock holds about $84 billion in BTC via the iShares Bitcoin Trust (6.8% of supply) and $15 billion in its Ethereum ETF. Mitchnick said most altcoins lack long-term value and advised clients to prioritize Bitcoin’s digital-gold narrative and product-market fit. BlackRock also manages Circle’s USDC reserves and is growing its tokenization business. Its BUIDL tokenized money market fund has nearly $3 billion in market cap. On-chain stock tokens are gaining traction, though pending SEC rules could reshape the sector.

Neutral

BlackRock’s rejection of altcoin ETFs may dampen sentiment toward smaller tokens, but its strong backing of Bitcoin and Ethereum ETFs provides stability for the largest assets. Similar institutional caution in the past has led to muted altcoin rallies while reinforcing Bitcoin’s leadership. In the short term, traders may reduce exposure to altcoin ETFs. Over the long term, growing ETF inflows into BTC and ETH and expansion of tokenization could support broader market adoption. Overall, the news balances bearish signals for altcoins with bullish underpinnings for major coins, resulting in a neutral impact.