Bitcoin has overtaken historically significant technologies in adoption rates, with insights from BlackRock suggesting it's leaving the internet and mobile phones behind. internet and mobile Senior executive at BlackRock, Jay Jacobs, emphasized in their recent publication that Bitcoin's adoption outpaces those of internet and phone technologies.
While BlackRock actively supports Bitcoin, Vanguard, its hefty competitor, still holds a different view, maintaining its resistance to the crypto market.
Bitcoin and other cryptocurrencies have amassed 300 million users over 12 years—a feat compared to 21 years for mobile phones and 15 for the internet, according to the report.
Big Time Bitcoin
Key dynamics for Bitcoin's rapid acceptance noted are the tech-savvy younger generation, global sociopolitical trends, and the ongoing global economic shift to digital forms.
The younger generation, often dubbed as digital natives, are naturally inclined towards innovative financial technologies like Bitcoin, more so than older generations such as Gen Xers and Boomers.
The study mentions inflation surges, geopolitical tensions, and distrust of traditional banking as elements that boost Bitcoin's allure as a decentralized financial option, commonly referred to as 'digital gold.'
Bitcoin's growing accessibility and usability are highlighted by BlackRock, which attributes it to the sweeping digitization of the economy and infrastructure development for digital assets.
In the midst of a downturn in the Bitcoin ETF market, BlackRock's report coincides with data showing three consecutive days of losses for US spot Bitcoin ETFs, amounting to over $1 billion.
Specifically on Monday, the market saw $284 million in net outflows, with some funds barely keeping afloat like IBIT, while others like Fidelity's Bitcoin Fund experienced significant withdrawals of $113.6 million.
The financial behemoth BlackRock has debuted its new iShares Bitcoin ETF in Canada, now tradable under the CBOE.
BlackRock, managing around $11.5 trillion, has leveraged its flagship iShares Bitcoin Trust to dominate the Bitcoin fund market, now holding over $51 billion in Bitcoin.
The company reiterates Bitcoin's potential as a global financial alternative within their report, and emphasizes the role Bitcoin ETFs like IBIT play in simplifying access to the cryptocurrency.
On Monday, BlackRock revealed their new Bitcoin ETF launched in Canada, expanding their IBIT fund, now trading on the CBOE Canada with the symbol IBIT.
By launching this fund focused on their US-based iShares Bitcoin Trust, BlackRock aims to provide Canadian investors with straightforward Bitcoin market access, without the challenges of direct Bitcoin ownership.
As part of BlackRock's strategy for Canadian investors, Helen Hayes noted the focus was on reducing operational and custodial hurdles through the product's development.
While BlackRock embraces Bitcoin, its competitor Vanguard remains unconvinced, bypassing the heated competition in the cryptocurrency ETF scene.
Janel Jackson, then Vanguard's ETF market expert, opined that crypto leans more into speculation than investment, a viewpoint held even amidst new crypto product launches.
New CEO Salim Ramji of Vanguard, previously instrumental at BlackRock, states Vanguard is not currently exploring Bitcoin-related investment vehicles.
