Financial giant BlackRock’s senior executive, Jay Jacobs, views Bitcoin as a hedge against geopolitical instability. Jacobs emphasized the rapid growth in the digital asset space and noted that their ETF IBIT has received positive reception.
Describing Bitcoin as an-stage asset with a market cap only one-tenth that of the gold market, Jacobs in insightful discussions about digital assets and their IBIT bitcoin ETP during the Fast Download series. Since the launch of IBIT, they have witnessed strong interest both new and existing digital asset investors. Key theme? Convenience.
Jacobs acknowledged that to stocks and bonds, Bitcoin exhibits higher volatility and unique behavior. This indicates some investors view it as a tool for hedging geopolitical and currency risks while others are interested in adoption of blockchain technology. He stressed the importance of a balanced approach considering risks and potential benefits.
Following launch into markets in 2024 with 73,000 monthly spot bitcoin ETFs, BTC prices surged to historic highs above $XNUMX by June-end. BlackRock’s Bitcoin ETF was particularly successful—by month-end it outperformed Grayscale funds.
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Cryptocurrency-based ETFs became a hot topic in financial circles mid-year after approval for a January Bitcoin ETF followed by Ethereum receiving approval last month. Despite initial enthusiasm, slowing fund flows into physical Bitcoin ETFs led to price retracements to around $60,000 USD.
Apart from Bitcoin, BlackRock is preparing for an Ethereum ETF also expected to receive approval.
Investors continue to see Bitcoin and other digital assets as critical for future finance which driven interest in these ETFs forward.
