Changing the game for bitcoin exposure with an ETF

Jay Jacobs Jan 13, 2025

3 reasons to consider the iShares Bitcoin ETF (IBIT) for bitcoin exposure.

KEY TAKEAWAYS

  • Bitcoin, the world’s leading cryptoasset,1 has experienced rapid adoption, catching the attention of individual and institutional investors alike.
  • Traditionally, investing directly in bitcoin comes with several obstacles, such as opening new accounts, potentially high trading fees and addressing security challenges.
  • IBIT offers convenient access to bitcoin exposure through a familiar and commonly-traded investment vehicle — the ETF.

Bitcoin is the world’s leading and most widely adopted cryptoasset with a market cap of close to USD$ 2 trillion.1 Bitcoin’s global and decentralized nature gives it the potential to be viewed as a global monetary alternative that may benefit from global disorder and declining trust in institutions and government issues fiat currencies. Investors have taken notice as institutions and individuals alike have been adding bitcoin exposure to their financial assets. Yet until now, gaining exposure to bitcoin has often presented investors with several obstacles, from needing to open new accounts, facing high trading fees, and addressing security challenges. But just as ETFs have brought millions of investors efficient access to previously difficult-to-reach markets like gold and international stocks, IBIT now brings access to bitcoin exposure in a convenient way.

BITCOIN'S RAPID ADOPTION

Since bitcoin’s launch in 2009, its pace of adoption has been even faster than that of other breakthrough technologies like the internet and mobile phones. Several factors have accelerated this adoption, including:

  • Demographic patterns: younger generations are more likely to be considered "digital natives," resulting in greater predisposition towards bitcoin adoption than GenX and Baby Boomers.2
  • Global shifts: certain trends such as inflation fears, global political division and banking and fiscal concerns have increased bitcoin’s resonance as a decentralized asset.
  • Future of finance: and lastly, the continued digital transformation of the global economy is changing the world of finance, with the maturation of digital assets infrastructure easing barriers of access and creating new use cases for bitcoin.3

Figure 1: Adoption of cryptoassets has outpaced growth for mobile phones and the internet⁴

Time needed to achieve 300 million users

Color-coded table comparing various characteristics between U.S. Treasuries, Gold, and bitcoin. Comparisons include supply, volatility, length of track record, governance, cost to move, cost to store and market cap

The first cellular mobile phone was used in 1973. Source: NPR, Our World in Data. January 1, 1983, is considered the official birthday of the internet. Source: University System of Georgia, Our World in Data. Initial price of bitcoin set in 2010. Source: Bloomberg, Cambridge Center for Alternative Finance, Crypto.com. Past performance does not guarantee future results.

Chart Description: Bar chart displaying time needed to reach 300 million users between crypto, the internet, and mobile phones since their inceptions. Crypto reached 300 million users faster than the internet and mobile phones.


3 reasons why IBIT can change the game for bitcoin exposure

Despite rising bitcoin adoption, direct investing in bitcoin presents unique complexities for investors. That’s why we launched IBIT — the iShares Bitcoin ETF — to make exposure to bitcoin easier for all.

Here’s why we believe IBIT can change the game for investors:

  1. Access: IBIT allows you to access bitcoin exposure in your traditional brokerage account. As an ETF, IBIT provides exposure to bitcoin, but trades like a stock. Therefore, it can be traded through traditional brokerage platforms alongside other investments such as stocks, bonds, and other ETFs — across both taxable and tax-advantaged accounts like TFSA.
  2. Convenience: IBIT can help reduce the complexities of gaining exposure to bitcoin for investors. Buying bitcoin directly often requires opening new accounts at crypto exchanges or select online brokerages. To make sure their bitcoin is as secure as possible, investors often need to set up their own custody arrangement outside of their crypto exchange, which can be both costly and risky. IBIT can help minimize some of these unique crypto hurdles through a familiar and commonly-traded investment vehicle — the ETF.
  3. Integrated technology: IBIT is managed by the worlds largest asset manager, and leverages a multi-year technology integration developed with Coinbase Prime, the world’s largest institutional digital asset custodian.⁵

CONCLUSION: A NEW ERA FOR BITCOIN EXPOSURE WITH IBIT

The emergence of bitcoin ETFs marks a significant milestone for both digital assets and traditional markets. IBIT’s launch is rooted in iShares’ commitment to providing access, making bitcoin exposure available to more investors through the convenience, efficiency, and familiarity of an ETF.

Access IBIT through your online brokerage or discuss with your financial planner to find out how IBIT may fit into your portfolio.

Jay Jacobs, U.S. Head of Thematics and Active Equity ETFs at BlackRock

Jay Jacobs

U.S. Head of Thematics and Alternative ETFs, at BlackRock

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