BlackRock’s Bitcoin ETF has been one of the top ETFs for the coin since January 2024. Following the launch of the funds, Bitcoin exploded in price, reaching a new all-time high of $73,000 in March 2024. Crypto-based ETFs have dominated the conversation within the finance sector, led by Bitcoin and newly released Ethereum ETFs.
BlackRock’s Jay Jacobs Shared Company’s Support for Bitcoin in the Past
BlackRock’s Head of Thematic and Active ETFs, Jay Jacobs, painted a similar picture back in June about how vital BTC is to the future of finance. Jacobs said that the digital assets industry is blowing up, and investors have loved the IBIT ETF since its launch. “Bitcoin is a nascent asset. It’s only one-tenth of the size of the gold market,” Jacobs said in a June.
“Therefore, it has high volatility and behaves a bit differently than stocks and bonds,” Jacobs added. “A lot of investors look at it as a potential hedge against geopolitical and monetary risks. Other investors look at it as a way to play future adoption of blockchain technology. In either case, investors must take a measured approach to Bitcoin, considering both the risks and the potential returns of the asset.”
Many investors view Bitcoin and digital assets as the future of everyday finance, thus the interest in these ETFs. BlackRock believes that this interest in the cryptocurrency sector will only grow, especially as new alternatives for the dollar and investing become more popular.
As the US dollar remains in a precarious position, cryptocurrencies have been the talk of the town as safe alternatives to fiat. Although the US dollar’s position atop global currencies is secure, there have been notable diversification efforts. Moreover, various Central Banks have sought to protect themself from its impending failure, while embracing technology opportunities in digitized platforms such as crypto.
Link: https://watcher.guru/news/blackrock-bitcoin-is-a-hedge-against-global-disorder?utm_source=pocket_shared#google_vignette
Source: https://watcher.guru/news
