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Samara Cohen, BlackRock’s Chief Investment Officer for Exchange Traded Funds (ETFs) and Index Investments, revealed that 75% of buyers of the company’s Bitcoin ETF are cryptocurrency enthusiasts who are unfamiliar with traditional Wall Street investments.
BlackRock Says Majority of Bitcoin Spot ETF Buyers Are From Cryptocurrency Community, Not Traditional Finance
Speaking at the Permissionless Conference in Utah, Cohen explained that the ETF structure provides investors with a more accessible way to invest in BTC. “The ETF was created as a vehicle,” he told CNBC. BlackRock’s Bitcoin ETF has seen significant interest since its launch, with the combined market cap of eleven spot BTC ETFs exceeding $63 billion and inflows of nearly $20 billion. In the past five trading days alone, spot Bitcoin ETFs have seen net inflows of over $2.1 billion, with BlackRock’s share accounting for half of those sales.
The increase in trading volume is consistent with Bitcoin trading above $68,300, its highest level since July. Bitcoin ended the third quarter up nearly 140% year-over-year, significantly outperforming the S&P 500. Shares of major crypto exchange Coinbase also rose 24% this week, its best performance since February.
Cohen noted that a key part of BlackRock’s strategy is to educate crypto investors about the benefits of ETFs and ETPs. According to recent 13F filings, 80% of buyers of these new U.S. spot bitcoin products are direct investors. Of this group, 75% have never owned iShare, BlackRock’s well-known ETF brand.
“We initially thought we needed to educate ETF investors specifically about crypto and Bitcoin,” Cohen said, “but instead, we found ourselves educating crypto investors about the benefits of the ETP suite.”
Before the U.S. Securities and Exchange Commission (SEC) approved spot BTC funds in January, U.S. investors had limited options for buying and storing cryptocurrencies. Coinbase and other centralized exchanges were popular but did not meet the full needs of digital asset investors. The success of Bitcoin ETPs highlighted the market’s desire for a more efficient and accessible approach to crypto investment.
New data from Chainalysis shows that North America remains the world’s largest crypto market, accounting for nearly 23% of all crypto trading volume. Between July 2023 and July 2024, the region generated $1.3 trillion in on-chain value. Additionally, venture firm Andreessen Horowitz (a16z) reported that more than 40 million Americans now own cryptocurrencies, underscoring the growing adoption of digital assets.
Much of this adoption has come from asset management clients requesting spot crypto products to be added to their portfolios. Cohen believes ETFs and blockchain technology address similar challenges in finance. “ETFs have been a decentralizing force in traditional finance (TradFi) markets, increasing access and transparency, particularly following the 2008-2009 financial crisis,” he said. He drew a parallel between the publication of the Bitcoin whitepaper in 2008 and global efforts to increase transparency in finance following the crisis.
*This is not investment advice.