- According to BlackRock, crypto ETF adoption remains in its early stages.
- Mainstream interest in BTC and ETH exposure is slowly rising.
- Investors are showing long-term confidence despite market volatility.
After years of speculation and debate, cryptocurrencies are finally gaining attention in mainstream finance. Amid increasing regulatory clarity, Bitcoin, Ethereum, and other digital assets are finding their way into traditional investment portfolios. According to BlackRock representatives, this year is set to see more crypto adoption, especially via exchange-traded products.
BlackRock, the largest investment company, believes that crypto ETFs are still in their infancy. While investors and crypto enthusiasts are still learning about crypto investment products, more users could emerge in the coming years. This indicates that Bitcoin and altcoin ETFs are in their early stages, and widespread adoption may take years.
Crypto ETFs Are Just Getting Started, Says BlackRock
According to a CNBC report today, Jay Jacobs, BlackRock’s US head of Equity ETFs, asserted that the crypto ETF market is still in its early stages. He added that many investors have only started to learn what Bitcoin is and how it might fit into the traditional investment portfolio.
Speaking on CNBC’s ETF Edge this week, he suggested that both Bitcoin and Ethereum ETFs remain in the beginning phases of adoption. He noted,
“It’s still so early. Many investors have still just been starting their educational journey around what is bitcoin, [and] how might it fit in a portfolio… We see this still being very early days for Bitcoin and Ethereum.”
The BlackRock ETF head added that this year could mark a turning point for exchange-traded funds. He attributes this to growing interest from Main Street investors seeking exposure to digital assets. Although Bitcoin ETFs have been in the market for nearly two years, many investors are still new to them. Jacobs further stated, “For many financial advisors, maybe they didn’t have access to crypto before, or weren’t able to buy IBIT before it was approved on their platforms.”
Investor Loyalty Grows Despite Volatility
Over the past few months, the crypto market has been facing extreme volatility, especially following the October 11 crash. Despite this wild ride, investors and traders remain optimistic, believing that the industry will soon cool down, triggering another major rally.
Commenting on this investor sentiment, VettaFi’s Todd Rosenbluth posited that many investors opt to stay invested even when the crypto market is down. For experienced traders, crypto ETFs are a better option as they choose to build a long-term conviction rather than panic selling. He noted,
‘They’re sticking with it, not necessarily selling out and looking for another alternative so quickly…It shows that investors that are moving into getting exposure to cryptocurrency through the ETF wrapper have some loyalty to the product, have confidence in the long-term trends. They’re not necessarily moving in or moving out based on that volatility.”
According to him, this investor sentiment highlights the growing sense of trust in cryptocurrencies and crypto investment vehicles. It marks a significant divergence from the public’s initial skepticism towards digital assets.
As noted by Rosenbluth, crypto ETF investors are an example of the community’s broader confidence. They highlight the long-term adoption trend, rather than reacting to every price change. According to the expert, this also indicates that a more patient and committed investor base is taking shape.
