BlackRock's Bitcoin ETF Bridges Traditional and Crypto Markets

BlackRock's iShares Bitcoin Trust ETF has become a gateway for new investors to enter the broader exchange-traded fund market, according to Jay Jacobs, the firm's U.S. head of equity ETFs.

About three-quarters of investors in IBIT had never owned an ETF before buying it, making the fund more than just a regulated wrapper for bitcoin exposure.

IBIT was initially seen as a bridge for traditional investors to gain exposure to crypto without using exchanges, wallets, or direct custody. However, BlackRock's experience suggests that the reverse is also true, with crypto-native or bitcoin-first investors using IBIT as their first step into the wider ETF market.

The iShares Bitcoin Trust ETF has about $48 billion in assets under management and holds 765,936 BTC, making it one of the most important institutional access points for bitcoin exposure.