BlackRock's iShares Bitcoin Trust ETF (IBIT) has attracted a majority of first-time ETF investors, with approximately 75% of IBIT buyers having never owned an ETF before, according to Jay Jacobs, the firm's U.S. head of equity ETFs. The fund, launched in January 2024, holds $48 billion in assets under management and 765,936 BTC, making it one of the largest institutional access points for bitcoin exposure. Jacobs stated that IBIT serves as an entry point for both traditional investors seeking digital asset exposure and crypto-native investors entering the broader ETF market for the first time. The pattern reflects a two-way bridge between traditional finance and digital assets, with IBIT investors subsequently purchasing other BlackRock products including the iShares Core S&P 500 ETF, iShares AI Innovation and Tech Active ETF, and iShares Gold Trust. This cross-selling behavior positions IBIT as both a bitcoin access product and a customer acquisition channel for BlackRock's wider ETF lineup.
BlackRock Reports 75% of IBIT Investors Are First-Time ETF Buyers
Jay Jacobs stated that around three-quarters of IBIT investors had never owned an ETF before purchasing the bitcoin product. "IBIT was a way for traditional investors to now get into digital assets. But we have seen a lot of people really kind of enter into IBIT, starting with digital asset ETPs," Jacobs said. The statistic indicates that spot bitcoin ETFs are functioning as a reverse bridge, with crypto-native or bitcoin-first investors using IBIT as their first step into the wider ETF market. BlackRock's data shows that investors who first buy IBIT often proceed to purchase other BlackRock funds, including equity index products, thematic active strategies, and commodity trusts. Jacobs described this pattern as a way to engage with a different group of investors than the firm had previously reached. "We absolutely see it as this is a way to engage with a different group of people than maybe we've engaged with in the past," he said.
BlackRock Launches Bitcoin Premium Income ETF With Covered Call Strategy
BlackRock launched the iShares Bitcoin Premium Income ETF, a product designed to generate income by selling covered call options linked to bitcoin exposure. The fund expands BlackRock's crypto ETF strategy beyond spot exposure and into structured return products. Covered call strategies allow investors to collect option premium while potentially giving up some upside if bitcoin rallies strongly, creating a different return profile from IBIT's direct spot price exposure. The launch demonstrates how bitcoin is being integrated into the same product architecture used across equities, commodities, and income strategies. The move reflects a competitive phase in crypto ETFs, where issuers are developing income strategies, options-based products, multi-asset funds, and portfolio tools that blend crypto with traditional asset classes.
Jacobs Describes Market Shift as Great Convergence of Traditional and Digital Finance
Jacobs described the growing overlap between traditional finance, decentralized finance, and digital assets as the "Great Convergence." The phrase reflects a market where crypto products, tokenized assets, ETFs, private markets, and public securities are increasingly being used by the same investors. "Historically, you've seen a lot of different assets held separately," Jacobs said. "DeFi versus TradFi, actively managed funds versus index funds, private assets versus publicly listed assets… and what's happening is people are looking for more solutions to manage their portfolios." He added: "I think you're gonna hear a lot less about versus, you know, TradFi versus DeFi, and I think you're gonna see a lot more ampersands, it's TradFi and DeFi." The trend is visible beyond bitcoin ETFs, with crypto exchanges offering products linked to private market exposure, including pre-IPO perpetual futures and tokenized stocks. Pre-IPO perpetual futures volumes have grown from approximately $1 billion in early May to roughly $22 billion, with Binance becoming the largest venue, according to CryptoQuant. The growth shows how crypto market infrastructure is being used to trade exposures that historically belonged to traditional finance.
FAQ
What percentage of IBIT investors had never owned an ETF before?
Approximately 75% of investors in BlackRock's iShares Bitcoin Trust ETF (IBIT) had never owned an ETF before purchasing the bitcoin product, according to Jay Jacobs, BlackRock's U.S. head of equity ETFs. This statistic indicates that IBIT is serving as an entry point for crypto-native investors into the broader ETF market.
What is the iShares Bitcoin Premium Income ETF?
The iShares Bitcoin Premium Income ETF is a BlackRock product designed to generate income by selling covered call options linked to bitcoin exposure. The fund allows investors to collect option premium while potentially giving up some upside if bitcoin rallies strongly, creating a different return profile from IBIT's direct spot price exposure.
