Bitcoin Adoption Still Early, BlackRock Says

BlackRock‘s BLK Head of Digital Assets, Robert Mitchnick, on Wednesday said that Bitcoin BTC/USD adoption is still in its “early days”, particularly within the wealth advisory and institutional segments.

What Happened: He shared this perspective during an interview with Bloomberg, discussing the firm’s focus for the second year of their IBIT IBIT ETF.

Mitchnick acknowledged that the first year of IBIT saw record-setting inflows and asset accumulation.

He highlighted that BlackRock is still prioritizing its role as a resource and education partner for clients.

The firm specifically targets wealth advisors and institutions, which it believes hold the key to long-term adoption.

Mitchnick stated that the direct end investor demand was “gangbusters out of the gates”, but the wealth advisory and institutional segments are yet to see full adoption due to higher hurdles, including more thorough diligence and approval processes.

He noted that while both wealth advisory and institutional channels present significant opportunities, the wealth advisory channel is currently showing the most momentum.

Firms are working through expedited approvals to allow their advisors to add Bitcoin ETPs to client portfolios.

Mitchnik pointed out that although institutional adoption is moving slowly, BlackRock is “starting to see more of them emerge”, particularly in the last quarter of the year.

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Why It Matters: Mitchnick’s comments suggest that while initial enthusiasm for Bitcoin ETFs has been strong, the long-term growth and mainstream adoption of Bitcoin will require deeper engagement with wealth advisors and institutional investors, and the market remains at a very early stage of maturity.

While BlackRock CEO Larry Fink has shifted from being a Bitcoin skeptic to embracing its potential in recent years, JPMorgan Chase CEO Jamie Dimon has held firm in his opposition.

Despite his personal views, JPMorgan has capitalized on Bitcoin's integration into financial products, including its role as an authorized participant for BlackRock's spot Bitcoin ETF.

For instance, speaking with CBS News on Tuesday, Dimon reiterated his long-standing criticism, stating, "Bitcoin itself lacks intrinsic value. It is heavily used in activities such as money laundering, ransomware, and human trafficking, which makes me uncomfortable with it."

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