BlackRock: Bitcoin ETF is drawing investors into TradFi

Jay Jacobs, US head of equity ETFs at BlackRock, says the firm's iShares Bitcoin Trust (IBIT) has served as a gateway for new investors into the broader ETF market. He estimates around three-quarters of IBIT holders had never owned an ETF before. Launched in January 2024, IBIT is BlackRock’s flagship crypto product with $48 billion in assets under management and holds 765,936 BTC.

Jacobs notes the flow has gone both ways: many investors who start with the Bitcoin product then buy other BlackRock funds, including the S&P 500 (IVV), artificial intelligence (BAI) and gold (IAU). The firm also launched the iShares Bitcoin Premium Income ETF (BITA) on Wednesday, a fund that generates income by selling covered call options on its Bitcoin holdings.

He describes a growing overlap between crypto, decentralized finance and traditional finance as the “Great Convergence,” with investors seeking combined solutions rather than separate silos.

United States

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