2 days ago
10
Bitcoin has achieved an adoption rate that outstrips historical technologies like the internet and mobile phones, BlackRock’s Head of Thematic & Active ETFs Jay Jacobs shared in a recent report.
BlackRock actively touts Bitcoin while Vanguard, one of its largest competitors, still adopts an anti-crypto stance.
Cryptocurrencies, including Bitcoin, reached 300 million users in just 12 years, the report notes. This compares to 21 years for mobile phones and 15 years for the internet.
Big Time Bitcoin
According to the report, three key factors that accelerate Bitcoin acceptance are the growing adoption of younger users, global events and trends, and the ongoing digitalization of the global economy.
Young individuals, often referred to as “digital natives,” are more inclined to digital innovations like Bitcoin compared to older ones like Gen X and Baby Boomers. Bitcoin adoption is accelerating as this group gains more economic influence.
Rising inflation, geopolitical instability, and concerns about traditional banking and fiscal systems also make Bitcoin more appealing as a decentralized alternative, the report notes. Many see Bitcoin as “digital gold” and believe the asset can serve as a hedge against traditional financial risks.
Bitcoin is becoming more accessible and practical for a wider user base. BlackRock points out that the continued digitization of the global economy and the development of digital asset infrastructure help lower barriers to entry for Bitcoin.
BlackRock’s latest report comes amid a Bitcoin ETF market-wide downturn. According to Farside Investors data, spot Bitcoin ETF in the US have extended their losing streak to three consecutive trading days, shedding over $1 billion.
On Monday alone, these funds reported $284 million in net outflows. IBIT was the only gainer of the day while the rest of the group either posted major losses or saw zero flows. Meanwhile, Fidelity’s Bitcoin Fund (FBTC) recorded $113,6 million in withdrawals; followed by funds managed by ARK Invest/21Shares, Grayscale, and Bitwise.
BlackRock Launches iShares Bitcoin ETF on CBOE Canada
The asset management giant, overseeing about $11.5 trillion in assets, has actively promoted Bitcoin adoption through its flagship crypto product, the iShares Bitcoin Trust. The fund, holding over $51 billion worth of Bitcoin, is currently the world’s largest Bitcoin fund – a position BlackRock achieved in less than a year of launch.
BlackRock reiterates its endorsement in the report, stating that Bitcoin’s characteristics give it the potential to serve as a “global monetary alternative.” The firm also notes that Bitcoin ETFs, like IBIT, help streamline access to Bitcoin.
In promoting its IBIT fund, on Monday, BlackRock announced it had launched a new Bitcoin exchange-traded fund (ETF) in Canada, known as the iShares Bitcoin ETF. The ETF is now available for trading on the CBOE Canada under the ticker symbol IBIT, with U.S. dollar-denominated units trading as IBIT.U.
The fund, primarily investing in BlackRock’s U.S.-based iShares Bitcoin Trust, joins a growing market of over ten existing Bitcoin ETFs in Canada. Through the new launch, BlackRock seeks to provide Canadian investors with a convenient way to gain exposure to Bitcoin without the complexities associated with direct ownership.
According to Helen Hayes, Head of iShares Canada at BlackRock, the product was created as part of BlackRock’s ongoing strategy to simplify access to Bitcoin for Canadian investors, removing operational and custody challenges.
While BlackRock actively endorses Bitcoin, its rival Vanguard remains skeptical. The $9 trillion asset manager has opted out of the cryptocurrency ETF market, even as more competitors join the race.
“In Vanguard’s view, crypto is more of a speculation than an investment,” said Janel Jackson, Vanguard’s former global head of ETF Capital Markets and Broker & Index Relations, in a statement last January following the debut of US-listed spot Bitcoin ETFs.
Vanguard’s new CEO, Salim Ramji, who previously played a key role in expanding BlackRock’s ETF offerings, said that Vanguard did not have any plans to explore Bitcoin-related investment products.
English (US) ·