BlackRock Bitcoin ETF draws new investors, adds income fund

A senior executive at BlackRock has revealed that the firm's spot Bitcoin exchange-traded fund is attracting a significant number of investors who are entirely new to the ETF market, with many subsequently moving into traditional investment products. Jay Jacobs, the firm's U.S. head of equity ETFs, stated that approximately 75% of investors in the iShares Bitcoin Trust (IBIT) had never owned an ETF before.

Jacobs described the fund as a new engagement channel that is creating a two-way bridge between digital assets and traditional finance. While IBIT initially served to bring traditional investors into crypto, he noted the dynamic has shifted, with many crypto-native investors now using the product as an entry point into broader financial markets. According to Jacobs, a common pattern is for investors who first buy IBIT to later purchase other BlackRock funds, such as its S&P 500, artificial intelligence-focused, and gold ETFs.

The iShares Bitcoin Trust, which launched in January 2024, is one of the largest spot Bitcoin ETFs, managing about $48 billion in assets and holding 765,936 BTC. BlackRock expanded its crypto-related offerings this week with the launch of the iShares...