In simpler terms, the Chief of Thematic and Alternative ETFs at BlackRock provides three compelling arguments for investors to think about incorporating Bitcoin ETFs into their portfolios by 2025, given the ongoing influx of funds.
In a recent market analysis, BlackRock’s Chief of Thematics and Alternative ETFs, Jay Jacobs, emphasized the swift expansion of Bitcoin Exchange-Traded Funds (ETFs) within the financial market. One significant point he made was that the rate of crypto asset acceptance has surpassed that of mobile phones and the internet in terms of progress.
A recent study by BlackRock found that it took 21 years for mobile phones to amass 300 million users, a feat matched by the internet in just 15 years. Remarkably, the adoption of cryptocurrencies reached this number in only 12 years.
According to Jacobs, Bitcoin’s worldwide and autonomous structure could make it seen as a universal monetary option that might prosper during international turmoil and a decrease in confidence in institutions and governments when they print their own currencies.
He understands that some traditional investors find it difficult to embrace Bitcoin (BTC) as an investment option because of its intricacies, such as setting up crypto trading accounts, expensive transaction fees, and security concerns. Yet, he posits that Exchange-Traded Funds (ETFs) might serve as the necessary entry point for conventional investors to effortlessly invest in Bitcoin.
Even though more people are using Bitcoin, investing directly in it can have distinct challenges for individuals. To simplify this process, we introduced IBIT – the iShares Bitcoin ETF – so that anyone can easily gain access to Bitcoin,” explained the BlackRock representative.
Initially, BlackRok thinks that Bitcoin ETFs can be traded like any other investment tools (such as bonds, shares, and other ETFs) on regular brokerage accounts, along with conventional stocks and traditional assets, due to their structure.
In the second instance, Bitcoin ETFs serve as a solution for investors seeking to invest in Bitcoin indirectly, bypassing the need to buy the digital currency directly from crypto exchanges due to potential difficulties or barriers they may encounter.
Jacobs clarified that investors typically take steps to safeguard their Bitcoin by managing their own storage solution apart from the cryptocurrency exchange they use, a process that may involve costs and potential risks.
Ultimately, he described the collaboration between BlackRock and Coinbase Prime where they’re combining years of technological development for IBIT (Institutional Blockchain Infrastructure Technology). This partnership aims to empower investors by allowing them to fully utilize the benefits this technology offers.
The introduction of IBIT is based on iShares’ dedication to offering investment opportunities. This means that Bitcoin exposure can be accessed by a wider range of investors thanks to the simplicity, speed, and comfort of an Exchange Traded Fund (ETF), as explained by Jacobs.
According to a previous report by crypto.news on January 14th, BlackRock’s IBIT was the unique Bitcoin ETF that experienced an investment inflow amounting to $29.46 million. In contrast, the vast majority of other Bitcoin ETFs either saw withdrawals or reported no changes in their investments at all.
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2025-01-14 14:12