The landscape for cryptocurrency on Main Street could undergo significant growth this year, particularly in terms of investment exposure.
According to Jay Jacobs, BlackRock's head of U.S. equity ETFs, spot bitcoin ETFs, which began trading on U.S. exchanges two years ago, are still considered a novelty. Appearing on CNBC's 'ETF Edge,' Jacobs remarked, "It's still so early. Many investors are just beginning their educational journey about what bitcoin is and how it might fit into a portfolio. We see this as still being the early days for both bitcoin and ethereum."
BlackRock oversees the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). As of the close of trading on Thursday, IBIT has seen a decline of more than 3% over the past year. This slump follows bitcoin's previous record high of approximately $126,000 last October; it is currently trading in the low $90,000 range. Similarly, ETHA has decreased by nearly 6%.
The recent momentum in cryptocurrencies can be attributed partly to the expansion of investment options by major asset managers like BlackRock, which now offer equity-like vehicles such as ETFs for these digital assets.
Jacobs noted, "For many financial advisors, perhaps there was no previous access to crypto, or they couldn’t buy IBIT until it was available on their platforms."
Despite the inherent volatility, investors are demonstrating loyalty to cryptocurrency ETFs. VettaFi's Todd Rosenbluth, in the same CNBC interview, highlighted that the asset class is maintaining interest amid market turbulence.
"They’re sticking with it, not immediately selling off and seeking alternatives," said Rosenbluth, pointing out that crypto investors are holding steady despite uncertainty. He further explained, "It shows that investors gaining crypto exposure through ETF structures are loyal to the product and have confidence in long-term trends. They’re not shifting positions solely because of volatility."