BlackRock publishes 3 key takeaways to boost Bitcoin ETF adoption in 2025

BlackRock’s Head of Thematic and Alternative ETFs gives investors three reasons to consider adopting Bitcoin ETFs in 2025 as inflows continue.

BlackRock’s Head of Thematic and Alternative ETFs, Jay Jacobs, noted the rapid growth of Bitcoin ETFs in the market in a recent market analysis report. One of the key takeaways he mentioned was how crypto asset adoption has surpassed mobile phones and the internet in its evolution.

According to BlackRock’s latest research, compiling data from multiple sources including NPR, Bloomberg and the Cambridge Center for Alternative Finance, it took 21 years for mobile phone adoption to reach 300 million users. It took 15 years for the Internet to reach the same milestone. Meanwhile, it only took 12 years for the cryptocurrency to reach the same number of users.

“Bitcoin’s global and decentralized nature gives it the potential to be seen as a global monetary alternative that could benefit from global disorder and declining trust in institutions and governments issuance of fiat currencies,” Jacobs said.

Opening crypto trading accounts acknowledged that some investors are still having a hard time warming up to Bitcoin (BTC) as an investment asset due to complexities plaguing Bitcoin (BTC), including high fees and other security challenges. However, he believes ETFs could be the gateway needed for traditional investors to access Bitcoin much more easily.

“Despite the increase in Bitcoin adoption, investing directly in Bitcoin presents unique complexities for investors. That’s why we launched IBIT (iShares Bitcoin ETF) to make access to Bitcoin easier for everyone,” said the BlackRock executive.

First, BlackRock believes that the nature of Bitcoin ETFs allows investors to trade crypto-based ETFs on traditional brokerage platforms alongside other investment vehicles such as bonds, traditional stocks, and other ETFs.

Second, Bitcoin ETFs eliminate the hurdles faced by investors who want to invest in Bitcoin without purchasing the digital asset directly from crypto exchanges.

“To ensure their Bitcoin is as safe as possible, investors often need to make their own custody arrangements outside of crypto exchanges, which can be both costly and risky,” Jacobs said.

Finally, he explained how BlackRock and Coinbase Prime are joining forces to leverage multi-year technology integration into IBIT to ensure investors can optimize their benefits to the fullest.

“The launch of IBIT builds on iShares’ commitment to providing access and making Bitcoin available to more investors through the convenience, efficiency and familiarity of an ETF,” Jacobs added.

As previously reported by Crypto.news on January 14, BlackRock’s IBIT was the only Bitcoin ETF to record inflows of $29.46 million. Meanwhile, the majority of Bitcoin ETFs have only seen outflows or reported no inflows.