It’s been a little over a year since BlackRock launched its iShares Bitcoin Trust ETF (IBIT), and the firm’s head of digital assets, Robert Mitchnick, describes the first year as “incredible.”
However, he notes that Bitcoin adoption is still in its early stages, particularly among institutional and wealth advisory clients.
The iShares Bitcoin Trust ETF saw record inflows and rapid asset accumulation in its inaugural year, driven largely by direct retail investor interest. The ETF also benefited from Bitcoin’s historic rally above $100,000 late last year, although enthusiasm may wane in the early months of 2025.
Mitchnick acknowledged the recent outflows from ETFs but praised the product’s broader success. “We’re focused on being a valuable resource and educational partner for our clients,” he says, adding that adoption in the institutional and wealth advisory segments is an untapped opportunity.
While individual investors were the primary driver of IBIT’s early success, the firm is now turning its attention to attracting institutional clients and wealth advisors, Mitchnick said. These segments face greater hurdles due to rigorous research and approval processes, but represent significant growth opportunities, he said.
“We are still in the early days of adoption in the asset advisory and institutional segments,” Mitchnick explained. “There is great momentum among firms working to accelerate approvals that will allow advisors to incorporate Bitcoin into their client portfolios.”
Mitchnick also highlighted the surge in institutional interest last quarter, as well as progress in wealth advisory channels, which he sees as a larger, longer-term opportunity.
“Both segments are very important, but asset advisory may hold the most promise due to the increasing momentum in approvals,” he said.
*This is not investment advice.