BlackRock Says Bitcoin Adoption Still Early Despite ETFs’ Year One Success

BlackRock’s head of digital assets, Robert Mitchnick, says Bitcoin adoption is about to take off as institutional players have yet to fully join the party.

Speaking in a Bloomberg interview, Mitchnick insisted it is still early days for Bitcoin adoption. The BlackRock executive stated that more institutions and wealth advisors would begin gaining exposure to Bitcoin through the iShares Bitcoin Trust (IBIT), broadening the reach of the pioneering cryptocurrency.

Early Days Despite Stellar Year One Performance

BlackRock led what was one of the most successful exchange-traded funds (ETFs) launches in history. The asset manager and ten others launched the Bitcoin spot ETFs a little over a year ago, with the funds gaining instant traction.

On the heels of the impressive inflows, BlackRock’s IBIT became the most successful launch in ETF history, crossing an inflow of $50 billion in record time. The issuer also became the largest Bitcoin holder, overtaking long-standing record holder Satoshi Nakamoto.

Despite these burgeoning feats, Mitchnick insists Bitcoin adoption is still early. He argued that many institutions and wealth advisors have not started buying Bitcoin and hope to attract them this year.

BlackRock Turns Attention to Large-Scale Adoption

The BlackRock executive stated that the asset manager will stick to its year-one strategy, which centers around enlightening its clients about the prospect of holding Bitcoin through IBIT.

While admitting that direct end demand for BlackRock’s Bitcoin ETF was “gangbusters out of the gate,” Mitchnick noted that the issuer is slowly turning its attention to large investors.

He told Bloomberg that Bitcoin adoption by institutions and wealth managers requires time, owing to the rigorous due diligence and approval processes. However, BlackRock remains focused on engaging with them and providing the needed resources and education.

Meanwhile, Mitchnick noted that these large-scale investors are beginning to come around, especially in the last quarter of 2024. Notably, the 13F SEC filing for the previous quarter shows that 682 unique filers hold BlackRock’s IBIT.

Furthermore, BlackRock recently launched an iShares Bitcoin ETF in Canada, expanding its reach. The asset manager intends to foster Bitcoin adoption in the region amid growing demand to gain exposure to Bitcoin.

More Adoption on The Horizon

The Bitcoin ETF is one significant source of inflows into Bitcoin. However, inflows through other means are beginning to gain notable traction.

Since Donald Trump’s November flirt with the crypto industry, corporate firms and nations globally have started showing interest in Bitcoin. Aside from MicroStrategy’s incessant Bitcoin purchases, other firms like Rumble, Matador, and Kurl Technologies have committed to massively stacking the premier asset as a reserve asset.

Meanwhile, market experts have insisted that Bitcoin will see greater adoption if Trump implements his promises to the crypto industry. The pro-Bitcoin president teased regulatory reform favoring digital assets and creating a US strategic Bitcoin reserve.