Bitcoin vs. Ethereum: BlackRock’s CIO Breaks the Silence on Which Crypto Institutions Actually Want
As crypto adoption accelerates in 2025, the battle between Bitcoin (BTC) and Ethereum (ETH) continues to capture the attention of both retail and institutional investors. While debates rage on in crypto Twitter and Reddit threads, one heavyweight voice has finally weighed in — and it might just end the discussion for now.
In a revealing interview on the Empire podcast, Samara Cohen, Senior Managing Director and Chief Investment Officer (CIO) of ETF and Index Investments at BlackRock, opened up about how the world’s largest asset manager views Bitcoin and Ethereum today. Spoiler: there’s a clear frontrunner, and it’s Bitcoin by a landslide.
With Bitcoin ETFs and Ethereum ETFs both making headlines this year, Cohen’s comments give crucial insight into how institutions like BlackRock are really positioning themselves in the crypto economy. Here’s what she had to say — and why it matters.
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Why BlackRock Went All-In on Bitcoin First
Let’s rewind a bit. When BlackRock launched the iShares Bitcoin Trust (IBIT), it wasn’t just a casual foray into crypto. It was a calculated, client-driven move based on hard data, risk models, and — crucially — surging investor demand.
“It was all three of those things,” Cohen explained, referring to investment thesis, market readiness, and the regulatory landscape. But what really drove it home was clear, vocal interest from BlackRock’s massive client base, asking for secure, regulated exposure to Bitcoin within their traditional portfolios.
This wasn’t BlackRock’s first Bitcoin rodeo either. Back in 2022, they rolled out a private Bitcoin trust for institutional investors — a trial run to master the operational, custodial, and compliance challenges of handling Bitcoin at scale. According to Cohen, that initial step was a game-changer internally, giving BlackRock the confidence to build out IBIT and, eventually, dominate the digital asset ETF market.
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The Surprising Profile of Bitcoin ETF Investors
One of the most interesting nuggets from Cohen’s interview was her breakdown of IBIT’s investor base. Roughly half of IBIT’s holders today are self-directed retail investors — people who opened brokerage accounts specifically to buy Bitcoin through a regulated, traditional product.
For many, it’s their first-ever exchange-traded product (ETP), with Bitcoin’s scarcity narrative and store-of-value appeal acting as a magnet. In short, Bitcoin has become crypto’s digital gold, and Wall Street has finally acknowledged it.
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Ethereum: Still The Underdog In Institutional Portfolios
Now, what about Ethereum, the so-called “world computer” and powerhouse behind DeFi, NFTs, and the Ethereum Virtual Machine (EVM)? BlackRock’s take is… cautious.
“Ethereum is still a distant second,” Cohen admitted. And the reason is layered.
While Ethereum powers some of the most exciting parts of Web3 — from decentralized exchanges to smart contract platforms — the investment case for ETH as a token is murkier for institutions. Cohen explained that while many investors are bullish on the utility of the Ethereum blockchain, it’s less clear how that translates into long-term, reliable value for ETH itself.
Bitcoin, with its fixed supply cap and predictable issuance schedule, fits neatly into traditional asset allocation models. Ethereum’s value, on the other hand, is entangled with network upgrades, token burns, gas fee fluctuations, and competition from other Layer-1 blockchains like Solana (SOL), Avalanche (AVAX), and Cardano (ADA).
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The Data Problem Holding Crypto Back
Another reason for Ethereum’s slower institutional adoption? The lack of standardized data and valuation frameworks across crypto assets.
Cohen highlighted a structural issue in crypto markets: metrics like cash flow, governance protocols, and team transparency — staples of equity investing — are often absent or inconsistent in crypto. That makes it difficult for traditional index managers to properly evaluate most crypto assets beyond Bitcoin.
“If I think about indexing fundamentally as an organizing technology for a market, how do you perform that task in crypto right now?” Cohen asked. It’s a rhetorical question with a clear implication: crypto needs to grow up a bit before more institutions dive in.
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Bitcoin’s Winning Formula: Simplicity, Scarcity, and Stability
For now, Bitcoin holds a commanding lead. Its hard-coded scarcity (21 million cap), mature infrastructure, and consistent narrative as a borderless store of value give it a unique advantage in institutional portfolios.
BlackRock currently recommends a 1–2% portfolio allocation to Bitcoin for investors seeking exposure to digital assets. Why the cap? Beyond 2%, the contribution to overall portfolio volatility spikes exponentially, Cohen warned.
This risk-adjusted approach makes Bitcoin an attractive, manageable addition for pension funds, hedge funds, and wealth managers dipping their toes into crypto.
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What’s Next for Ethereum and Crypto ETFs?
Ethereum isn’t out of the race. With continued development on Layer-2 scaling solutions, the growing influence of DeFi protocols, and a potential surge in tokenized real-world assets (RWAs), ETH could strengthen its investment thesis over time.
But for now, as Cohen summarized, “Understanding how to create a valuation framework for Ethereum or any other token gets more complicated.”
Until those frameworks emerge and the crypto data standards problem is solved, Ethereum’s big institutional moment might remain just out of reach.
Final Thoughts: Bitcoin Leads, Ethereum Waits
While retail crypto enthusiasts debate which chain is more “decentralized” or who has the better roadmap, the world’s largest asset manager has already made its choice — at least for now.
In 2025’s institutional crypto adoption race, Bitcoin is winning. And unless Ethereum can simplify its narrative and standardize its metrics, it’ll stay in second place.
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