Bitcoin (BTC) adoption is outpacing transformative technologies of the past, including the internet and mobile phones, according to one recent report from BlackRock.
The document highlighted that Bitcoin has rapidly evolved from a niche innovation to a globally recognized asset since its launch in 2009. It attributed the evolution to demographic trends, economic shifts and the ongoing digital transformation of the financial world.
Younger generations, often referred to as ‘digital natives’, are significantly more likely to embrace Bitcoin compared to Generation X and Baby Boomers. Their comfort with technology and preference for digital-first solutions have positioned them as the leading demographic in crypto adoption.
In terms of economic shifts, trends such as rising inflation, geopolitical tensions, and concerns about traditional banking systems have highlighted Bitcoin’s value as a decentralized asset.
It added that Bitcoin’s independence from central authorities in uncertain times has resonated with investors around the world.
The third driver is the maturation of digital asset infrastructure, which has lowered Bitcoin’s barriers to entry while creating new use cases. As the global economy digitalizes, BTC becomes an integral part of the evolving financial landscape.
Advocate for IBIT
The document also advocates using IBIT, BlackRock’s Bitcoin Exchange Traded Fund (ETF), to gain exposure to BTC. The asset manager argued that while Bitcoin adoption is growing, direct investments in BTC remain complex for many.
IBIT is the largest spot Bitcoin ETF, with nearly $38 billion in inflows, based on Farside Investors’ results. facts. It owns more than $50 billion in assets under management and was the largest ETF launched in 2024.
Particularly BlackRock launched a new Bitcoin ETF in Cboe Canada on January 13, which will be denominated in Canadian dollars and trade under the same IBIT ticker. Meanwhile, the US dollar-denominated units will trade under the symbol IBIT.U.
ETF Store CEO Nate Geraci praised BlackRock’s efforts to drive Bitcoin adoption through ETFs. He also criticized Vanguard, the second largest asset manager by assets under management, which has taken a completely opposite approach to Bitcoin.
Meanwhile, independent analyst Sam Callahan marked that Paragon Advisors disclosed a $21.7 million allocation to IBIT in their 13F form for the fourth quarter of last year.
Paragon has $292 million in assets under management, with IBIT making up almost 7.5% of its portfolio, its largest allocation. Callahan said the market has not priced registered investment advisors who increased exposure to Bitcoin in their portfolios.
