Crypto markets have seen renewed volatility following the latest Bitcoin selloff, reinforcing the asset class’s reputation for sharp price swings. But beneath that turbulence, exchange-traded funds are reshaping how investors access digital assets and how institutions engage with the space.
BNN Bloomberg spoke with Mike Philbrick, CEO at ReSolve Asset Management, about how regulatory clarity, expanding real-world applications and diversified ETF structures are changing how crypto fits into portfolios.
Key Takeaways
- Crypto remains highly volatile, with drawdowns often amplified by leverage unwinds and liquidity events.
- ETFs have accelerated institutional adoption by providing regulated, liquid access to digital assets.
- Regulatory clarity is improving, reducing a key barrier that previously limited institutional participation.
- Ethereum-linked activity is growing through stablecoins, tokenization and faster transaction settlement.
- Diversified crypto ETFs can offer broader exposure while keeping allocations small and intentional.
Read the full transcript below:
ANDREW: Time for the ETF report. We’re zeroing in on three crypto ETFs. Our guest says that despite the selloff we’ve seen in Bitcoin, if you zoom out, the fundamental backdrop keeps improving. Let’s bring in Mike Philbrick, CEO of ReSolve Asset Management. Mike, always great to see you. Just remind us — over the past two years or so, the advent of crypto ETFs has really revolutionized the space.
MIKE: It certainly has. The current drawdown is a reminder that crypto does remain a highly volatile asset and a reflexive market. When momentum breaks, the decline is often amplified by a leverage unwind and liquidations, which we’ve seen over the last several months.
At the same time, as you point out, ETFs have brought in billions of dollars, and the asset itself is garnering attention and becoming more mainstream. One of the biggest challenges to adoption was the regulatory framework. That’s what institutions were saying, and they’re getting more and more of that clarity as we see it develop.
ANDREW: Let’s get into three ETFs and their different features here. Start off with one that’s pretty straightforward — IBIT. It’s the iShares Bitcoin ETF, and it’s designed to reflect the price of Bitcoin.
MIKE: Correct. They’re going to hold the actual Bitcoin in the ETF structure. This is from iShares, and it’s really the cleanest way to have a Bitcoin allocation sleeve that you can simply rebalance to. I think rebalancing is incredibly important with the volatility in this asset class.
It allows for easy portfolio implementation alongside the other assets you have in your portfolio. This IBIT ETF from iShares is the most profitable ETF in the iShares lineup, which shows that the asset class has merit to some degree.
ANDREW: What do you mean by profitable, for the provider?
MIKE: For iShares, yes. This particular ETF is in the 40-basis-point range for costs, which makes it one of the lower-cost providers for Canadian investors looking to have a Bitcoin sleeve in their portfolio.
ANDREW: But it’s profitable just because of the flow-through of the management fee?
MIKE: Yes — and the sheer size of it, and the fact that it’s harder to custody. They charge a little more than a typical S&P ETF, which might charge two or three basis points. Forty basis points is quite a bit higher than that, due to the newness of the asset class and the way you have to custody it. Again, iShares has a vested interest in making sure the product remains viable.
ANDREW: Your next idea is FETH, the Fidelity Advantage Ether ETF. Ether is a slightly different beast from Bitcoin. What’s the attraction here for investors?
MIKE: ETH is the smart-contract layer of the digital asset world. The Ethereum network is getting a lot of attention because we’re hearing so much about stablecoins, and most stablecoins are built on the Ethereum network.
This is where we’re seeing stablecoins being legitimized through the GENIUS Act, and now getting more clarity as it works through the CLARITY Act, providing a growing buyer base for short-term U.S. Treasuries. All of that leads back to Ethereum being the base layer underneath it.
This is more of a technology play, with some store-of-value characteristics. You’re seeing adoption of stablecoins grow dramatically, as well as the potential for tokenization of real-world assets. We’re seeing it in money market funds, and bonds are likely next.
We’re also seeing regulatory clarity from both the SEC and the CFTC, including clarity around taxation. This smart-contract layer enables transactions at much higher speed than we currently have in traditional banking.
ANDREW: And you mentioned tokenization — that’s essentially creating versions of securities that can be traded more easily on digital platforms.
MIKE: Right, and it’s also about the settlement layer. Today, if you buy a stock, settlement is T+1. During that full day, where does that capital sit? If you’re trading on a tokenized ledger, settlement happens immediately. You get better use of capital and more velocity of money in the economy.
ANDREW: The final ETF is a broader one — NCIQ. It’s U.S.-listed and tracks the Nasdaq crypto index. This is a multi-asset crypto play.
MIKE: Yes. Rather than trying to decide whether you’re a Bitcoin fan or an Ethereum fan, this takes a market-cap approach. In this ETF, Bitcoin is about 77 per cent, Ethereum about 12 per cent, XRP around six per cent, Solana roughly three per cent, and a few others.
It’s a bit of a Bogle or Vanguard-style approach. You’re saying, “I don’t know which technology or crypto asset will perform best, so I’ll buy them in market-cap weights.” That gives you broader exposure.
It does trade in the U.S., which can be a consideration for some investors. And while it’s still dominated by Bitcoin and Ethereum, it gives a fuller view of the digital asset universe. Investors should still think about this as a small, intentional allocation.
ANDREW: Mike, thank you very much indeed.
MIKE: Thank you.
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This BNN Bloomberg summary and transcript of the Feb. 10, 2026 interview with Mike Philbrick are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
