BlackRock’s Head of Thematics and Alternative ETFs presents investors with three reasons why they should consider adopting Bitcoin ETFs in 2025 as inflows continue.
In a recent market insights report, BlackRock’s Head of Thematics and Alternative ETFs, Jay Jacobs, highlighted the rapid growth of Bitcoin ETFs in the market. One of the key takeaways he mentioned was how crypto asset adoption has managed to beat mobile phones and the internet in its development.
According to recent study by BlackRock, compiling data from multiple sources including NPR, Bloomberg and the Cambridge Center for Alternative Finance, it took 21 years for mobile phone adoption to reach 300 million users. The internet took 15 years to reach the same milestone. Meanwhile, it only took crypto 12 years to achieve that same amount of users.
“Bitcoin’s global and decentralized nature gives it the potential to be viewed as a global monetary alternative that may benefit from global disorder and declining trust in institutions and government issues fiat currencies,” said Jacobs.
He acknowledged how some investors still have a hard time warming up to Bitcoin (BTC) as an investment asset due to the complexities that plague it, including opening crypto trading accounts, high fees and other security challenges. However, he believes ETFs can become the gateway needed for traditional investors to access Bitcoin in a much more convenient way.
“Despite rising bitcoin adoption, direct investing in bitcoin presents unique complexities for investors. That’s why we launched IBIT — the iShares Bitcoin ETF — to make exposure to bitcoin easier for all,” said the BlackRock executive.
First, BlackRock believes the nature of Bitcoin ETFs allows investors to trade crypto-based ETFs on traditional brokerage platforms alongside other investment instruments such as bonds, conventional stocks and other ETFs.
Second, Bitcoin ETFs eliminate the obstacles faced by investors who wish to invest in Bitcoin without directly purchasing the digital asset directly on crypto exchanges.
“To make sure their bitcoin is as secure as possible, investors often need to set up their own custody arrangement outside of their crypto exchange, which can be both costly and risky,” explained Jacobs.
Finally, he explained how BlackRock and Coinbase Prime have joined forces in leveraging multi-year technology integration into IBIT to ensure that investors can optimize its advantages to the fullest.
“IBIT’s launch is rooted in iShares’ commitment to providing access, making bitcoin exposure available to more investors through the convenience, efficiency, and familiarity of an ETF,” added Jacobs.
As previously reported by crypto.news on Jan. 14, BlackRock’s IBIT was the only Bitcoin ETF that recorded an inflow of $29.46 million. Meanwhile, the majority of Bitcoin ETFs only saw outflows or reported no flows at all.
Source: https://crypto.news/blackrock-publishes-3-key-takeaways-to-boost-bitcoin-etf-adoption-in-2025/
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