Bitcoin’s (BTC) adoption is outpacing the transformative technologies of the past, including the internet and mobile phones, according to a recent report by BlackRock.
The document highlighted that since its launch in 2009, Bitcoin has quickly evolved from a niche innovation to a globally recognized asset. It attributed the evolution to demographic trends, economic shifts, and the ongoing digital transformation of finance.
Younger generations, often referred to as “digital natives,” are significantly more inclined to embrace Bitcoin compared to Gen X and Baby Boomers. Their comfort with technology and preference for digital-first solutions have positioned them as the leading demographic in crypto adoption.
Regarding economic shifts, trends such as rising inflation, geopolitical tensions, and concerns over traditional banking systems have highlighted Bitcoin’s value as a decentralized asset.
It added that, in uncertain times, Bitcoin’s independence from central authorities has resonated with investors worldwide.
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 digitizes, BTC is becoming integral to the evolving financial landscape.
Advocating for IBIT
The document also advocates using BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT, to gain exposure to BTC. The asset manager argued that while Bitcoin’s adoption grows, direct investment in BTC remains complex for many.
IBIT is the largest spot Bitcoin ETF, with nearly $38 billion in inflows, based on Farside Investors’ data. It holds over $50 billion in assets under management and was the largest ETF launched in 2024.
Notably, BlackRock launched a new Bitcoin ETF in Cboe Canada on Jan. 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.
The ETF Store CEO Nate Geraci praised BlackRock’s efforts to drive Bitcoin adoption via 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 highlighted that Paragon Advisors disclosed a $21.7 million allocation to IBIT in their 13F Form for last year’s fourth quarter.
Paragon has $292 million in assets under management, with IBIT comprising nearly 7.5% of its portfolio, the largest allocation. Callahan said the market did not price registered investment advisers increasing Bitcoin exposure in their portfolios.
