According to Jay Jacobs, US head of equity ETFs at BlackRock, 75% of investors in the iShares Bitcoin Trust ETF (IBIT) had never owned an ETF before purchasing the product. As reported by Cointelegraph's Chain Reaction podcast on June 19, Jacobs explained that "IBIT was a way for traditional investors to now get into digital assets, but we have seen a lot of people really kind of enter into IBIT, starting with digital asset ETPs." This revelation challenges the traditional narrative that Wall Street money would flow into crypto through ETF wrappers, revealing instead that crypto-native investors are increasingly entering traditional finance through Bitcoin ETFs.
The iShares Bitcoin Trust ETF, launched in January 2024, now holds 765,936 BTC and carries $48 billion in assets under management, making it the largest spot Bitcoin ETF by AUM. According to 99Bitcoins, this scale represents a structurally new investor cohort being absorbed into BlackRock's broader product lineup. Once IBIT investors enter the ecosystem, Jacobs noted that many proceed to purchase BlackRock's S&P 500 ETF (IVV), its gold fund (IAU), and its AI-focused product (BAI).
On Wednesday (June 17), BlackRock launched the iShares Bitcoin Premium Income ETF (BITA), a product that generates monthly income by selling covered call options on Bitcoin holdings. As reported by 99Bitcoins, this covered call strategy means the fund writes options contracts that give buyers the right to purchase Bitcoin at set prices, collecting premiums as income while capping some upside. BITA targets yield-seeking investors, retirees, and income allocators who want Bitcoin exposure but need cash flow, representing a yield-generation structure borrowed from equity income funds now applied to crypto assets.
The BlackRock revelations come as Bitcoin USD fell 3% overnight, dropping from over $64,000 to under $62,400, with investors fearing $60,000 is approaching. According to 99Bitcoins, Jacobs has indicated BlackRock's near-term roadmap remains focused on scaling IBIT and its Ethereum equivalent (ETHA) rather than launching altcoin ETFs, suggesting significant headroom before the firm needs to expand the token roster. The company refers to the merging of DeFi and TradFi as the "Great Convergence," with focus increasingly on integrating both worlds.
