This year might mark a notable increase in Main Street's interest in cryptocurrency investments. Even though two years have passed since the first spot bitcoin ETFs began trading on U.S. exchanges, Jay Jacobs from BlackRock believes they are still a relatively new concept.
"It's still so early," explained Jacobs, the U.S. head of equity ETFs at BlackRock, during CNBC's "ETF Edge." "Many investors are just starting to learn about bitcoin and how it might fit into their portfolios. We believe we're still in the early days for bitcoin and ethereum."
BlackRock manages the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). As of the close on Thursday, IBIT was down over 3% for the year. This decline follows last October's record high bitcoin price of approximately $126,000, which has since fallen to the low $90,000 range.
ETHA has similarly experienced a decrease, dropping almost 6%.
The increasing traction of cryptocurrencies is partly due to large asset managers like BlackRock providing more ways to invest in them using equity-like structures such as ETFs.
"For many financial advisors, they either didn't have access to crypto before or couldn't purchase IBIT until it was available on their platforms," Jacobs noted.
However, for those venturing into crypto, VettaFi's Todd Rosenbluth comments on the emerging investor loyalty to the asset class, despite occasional volatility. "They aren't quickly selling off and seeking alternatives," Rosenbluth shared with CNBC.
Rosenbluth further observed that crypto investors tend to hold steady despite market fluctuations. "It demonstrates that those investing in cryptocurrency through ETFs exhibit loyalty to the product and confidence in its long-term potential," he stated. "They're not necessarily reacting to the volatility by moving in or out."