BlackRock's Crypto ETFs Draw Investors to Traditional Finance

BlackRock's US head of equity ETFs, Jay Jacobs, says that many investors who buy BlackRock's iShares Bitcoin Trust (IBIT) go on to explore other traditional exchange-traded funds. This suggests a two-way bridge between Wall Street and digital assets.

iBIT has attracted around three-quarters of its investors who have never owned an ETF before, positioning the product as a pathway into the ETF ecosystem rather than a standalone crypto vehicle. The fund manages about $48 billion in assets and holds 765,936 BTC.

Jacobs characterized IBIT as a starting point for many investors who later diversify within BlackRock's broader lineup. He pointed to examples such as an S&P 500 fund (IVV), an artificial intelligence-focused product (BAI), and a gold ETF (IAU).