BlackRock focuses on Bitcoin and Ethereum ETFs as demand rises, with institutional investors seeking secure, legal crypto investment options.
BlackRock’s head of exchange-traded funds (ETFs), Jay Jacobs, recently discussed the growing demand for Bitcoin (BTC) and Ethereum (ETH) ETFs. According to Jay Jacobs, interest in these cryptocurrencies is still in its early stages. Senior Bloomberg ETF analyst Eric Balchunas shared Jacobs’ insights on X. Jacobs added that BlackRock is targeting Bitcoin and Ethereum ETFs since demand has been observed to be on the rise. He noted that a mere 5% of their clients invest in Bitcoin ($IBIT) and Ethereum ($ETHA) ETFs, meaning there is a lot of upside.
“We’re really just at the tip of the iceberg with Bitcoin and especially Ethereum,” Jacobs said. He ensured that BlackRock is focusing on these assets rather than coming up with new altcoin ETFs. This focus is an indication of increasing attention towards Bitcoin and Ethereum as investors look for more approaches to investing in the two popular cryptos.
Bitcoin Price Hits New High, Driving Interest in ETFs
Another person who expressed his opinion on Bitcoin was Mike Venuto of Tidal Financial Group. He also pointed out that Bitcoin is increasingly associated with different investment plans. Venuto said that a lot of people are out there proposing “Bitcoin + something” ETFs. He added that Bitcoin is used today in options trading, for traditional financial assets like Nvidia, Tesla, and MicroStrategy.
“Every options strategy you can think of is going to be tied to Bitcoin, Nvidia, Tesla, and MicroStrategy in ETFs,” Venuto stated. This means that bitcoin is now longer a single asset but a portfolio investment on its own. It is gradually becoming an element of other financial management processes since more people and companies are implementing it. The adoption of Bitcoin into the different approaches is expected to increase.
At the same time, Bitcoin price has surged to new levels. It is currently trading at $105,537 after touching its record high of $106,648. For the last month, Bitcoin has appreciated by 18%. This increase in value is driving the need for Bitcoin ETFs. A large number of investors are looking forward to making profits out of the new high in the Bitcoin price through exchange-traded products.
With Bitcoin and Ethereum getting more adoption, institutional investors seek how to invest in these digital assets legally. ETFs offer a familiar and secure option for investing in cryptocurrencies without directly holding them. This is attracting traditional investors who prefer traditional financial products.
