US crypto ETFs are pulling Bitcoiners into TradFi: BlackRock's Jay Jacobs
BlackRock says its spot Bitcoin ETF, IBIT, is attracting a new class of investors into the broader ETF market. Jay Jacobs said about three-quarters of IBIT investors had never owned an ETF before. The pattern is two-way: traditional investors enter crypto through Bitcoin exposure, then many buy other BlackRock funds such as the S&P 500, AI, and gold ETFs. IBIT, launched in January 2024, has become BlackRock’s flagship crypto product, with about $48 billion in assets and 765,936 BTC. BlackRock has also launched a Bitcoin premium income ETF that uses covered calls to generate income. Jacobs framed this trend as part of a “Great Convergence” between TradFi and crypto, where investors increasingly want combined solutions rather than separate categories. Examples include tokenized stocks and pre-IPO crypto derivatives, which have seen rapidly rising trading volumes.
