Institutional Bitcoin adoption still has a long way to go after the launch of Bitcoin Spot ETFs, according to the latest BlackRock Bitcoin predictions.
Bitcoin (BTC)
in 2024 has been a roller-coaster since January’s approval of Spot Bitcoin ETFs, with multi-billion dollar inflows from across the US financial sector fuelling a huge recovery from the pits of crypto Winter.Yet, amid a turbulent international climate – worsened by increased tensions between Israel-Iran, it seems that many have forgotten that this is just the beginning.
But global financial powerhouse BlackRock hasn’t, and the latest comments emerging from the Ripple Swell conference have underlined the financial giant’s confidence in the Bitcoin market.
#Bitcoin ETF net inflows since inception is so bullish. Wait until EVERYONE is risk on.
Still think #Bitcoin can reach $200k this cycle. That’s a 3.3x from here.
Apply a 2.5x multiple on top of that for a very strong miner like $IREN and that gives a price target of $60. pic.twitter.com/o88140KJbq
— Long_Vol_(₿) (@planA_thru_Z) October 3, 2024
Global Financial Powerhouse BlackRock Labels Bitcoin a $30 Trillion Opportunity – Here’s Why
Reporting from the Digital Assets Conference co-hosted by Mercado Bitcoin, CME Group, Deribit, and Fireblocks, Journalist Cassio Gusson took us to the heart of the action.
In a rousing talk at the event, Jay Jacobs, Head of Thematics and Active Equity ETFs at BlackRock, shared an optimistic outlook on Bitcoin’s future, emphasizing that institutional adoption of Bitcoin is still in the very earliest stages of tapping into a much larger $30 trillion wealth management market in the U.S.
“When we look at the wealth management market in the U.S., we’re still at a very early stage. Only about one in 200 portfolios have any Bitcoin exposure. As more advisors become familiar with the asset and have easier access to it, they’ll become more comfortable,” Jacobs highlighted.
Bitcoin ETF inflows have absolutely blown Gold's out of the water. Not even close, utterly dwarfed, decimated. Thanks for playing, non-fixed supply boomer rock enjoyoors. pic.twitter.com/k9uLybGxoJ
— Will (@WClementeIII) March 2, 2024
“Even though gold has a low correlation with equities, it remains a store of value. The same is expected for Bitcoin as more institutional investors enter the digital asset space.”
While institutional adoption is still in its early stages, there are already signs of growing interest, particularly among pension funds, sovereign wealth funds, and asset managers.
“We’re starting to see institutions really add these assets to their portfolios,” Jacobs revealed.
“The primary use case for institutional investors is diversification.”
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Hurdles Still Remain For TradFi to Unleash The Full Power of Their Capital
Yet, Jacobs also pointed out that there are still hurdles for TradFi institutions to unleash the full power of their capital in the market; after all, not every ETF is available to all investors across platforms in the U.S., meaning each must pass certain approval processes.
“Someone has to say, ‘Yes, we can buy this.’ And for Bitcoin, we’re still in the early days of institutional diligence. They are taking the necessary time with this asset, just as many institutions have done,” Jacobs explained.
Jacobs mentioned that despite this cautious approach, the first platform approvals have begun, marking a critical first step toward making Bitcoin more accessible to wealth management portfolios.
“It’s not just about pension funds and institutions, but also the $30 trillion U.S. wealth management market that is beginning its journey with this asset,” he added.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.