Bitcoin’s adoption is surpassing the growth seen with previous transformative technologies such as the internet and mobile phones, according to a recent report by BlackRock.
Since its inception in 2009, Bitcoin has rapidly transitioned from a niche concept to a globally recognized asset. This evolution has been attributed to various factors, including demographic shifts, economic changes, and the ongoing digitalization of the financial sector.
Younger generations, known as “digital natives,” are leading the charge in adopting Bitcoin over older demographics like Gen X and Baby Boomers. Their comfort with technology and preference for digital solutions have made them more open to embracing cryptocurrencies.
Economic trends like inflation, geopolitical uncertainties, and concerns about traditional banking systems have highlighted the value of Bitcoin as a decentralized asset. In times of uncertainty, the independence of Bitcoin from central authorities has resonated with investors worldwide.
The advancement of digital asset infrastructure has also played a significant role in Bitcoin’s adoption. This has reduced barriers to entry for individuals looking to invest in Bitcoin while creating new opportunities for its use in various financial applications as the global economy continues to digitize.
BlackRock is advocating for its spot Bitcoin exchange-traded fund (ETF), IBIT, as a way for investors to gain exposure to Bitcoin. With nearly $38 billion in inflows, IBIT is the largest spot Bitcoin ETF and holds over $50 billion in assets under management. It was also the largest ETF launched in 2024.
In a move to further promote Bitcoin adoption, BlackRock recently launched a new Bitcoin ETF on Cboe Canada, denominated in Canadian dollars and trading under the same IBIT ticker. The US dollar-denominated units will trade under the symbol IBIT.U.
The ETF Store CEO, Nate Geraci, commended BlackRock for its efforts to drive Bitcoin adoption through ETFs, contrasting it with Vanguard, another major asset manager that has taken a different stance on Bitcoin.
Independent analyst Sam Callahan pointed out that Paragon Advisors disclosed a $21.7 million allocation to IBIT in their 13F Form for the fourth quarter of last year. With $292 million in assets under management, IBIT makes up nearly 7.5% of Paragon’s portfolio, marking the largest allocation. This move by registered investment advisers to increase Bitcoin exposure in their portfolios has not been fully reflected in the market pricing.
Overall, Bitcoin’s rapid adoption and the introduction of innovative financial products like the IBIT ETF are paving the way for increased mainstream acceptance and utilization of cryptocurrencies in the global financial landscape.