Bitcoin’s journey continues to dominate market conversations as it approaches the critical $100,000 psychological milestone.
On CNBC, industry experts Todd Rosenbluth and Dan Egan assessed the changing role of Bitcoin and the cryptocurrency markets as the year comes to a close, discussing institutional adoption, retail participation, and future trends.
Rosenbluth noted the significant progress made in the area of Bitcoin ETFs, particularly in 2024. This year, groundbreaking products like BlackRock’s iShares Bitcoin Trust have been launched, leading to increased institutional interest. The availability of options tied to Bitcoin ETFs, which began trading on Nasdaq last week, has opened up new avenues for institutional investors, Rosenbluth said:
“We have seen tremendous growth in Bitcoin ETFs this year, with options providing an extra layer of exposure for institutions. Products like Nios’ BTCI ETF, which focuses on enhanced income strategies, are demonstrating innovation in this space.”
He expressed optimism that the crypto ETF market will expand further in 2025 as more asset managers introduce new offerings to the market.
Egan touched on retail investor behavior, citing BlackRock’s findings that 75% of Bitcoin ETF buyers are new to the crypto markets. He suggested that this participation could spill over into the broader ETF markets, but warned of speculative behavior.
“This year, crypto has solidified its place as a mature asset class, often referred to as ‘digital gold.’ The focus now is on how investors can systematically incorporate it into their portfolios,” he said. He noted that managing Bitcoin within a balanced portfolio requires careful consideration of rebalancing strategies and overall risk tolerance.
However, retail investors are facing challenges. Notorious Bitcoin bull Mike Novogratz recently warned of a potential correction that could test individual appetite. While corrections may deter some, Egan noted that others may see it as an opportunity to “buy the dip,” reflecting crypto’s unique culture of flexibility and speculative excitement.
Looking ahead, Rosenbluth described the $2 trillion milestone for Bitcoin as a key test for sustaining momentum. He also cited the continued growth of actively managed ETFs as a broader trend. “Firms like Capital Group and Fidelity have had significant success in 2024. We believe this trend will continue as more investors transition from mutual funds to ETFs,” he said.
*This is not investment advice.