Traditional finance and Bitcoin have become one. With its IBIT ETF, BlackRock is not only democratizing Bitcoin, it is reinventing investment by attracting a new generation of traders to regulated markets. A silent revolution, but very real.
In brief
- BlackRock's IBIT attracted 75% of novice ETF investors, proving its power of attraction for bitcoin holders.
- Now, TradFi and crypto have become one, with hybrid products like pre-IPO perpetual futures.
- Is Bitcoin losing its soul? Between institutionalization and decentralization, the IBIT raises a crucial debate.
IBIT, BlackRock’s Trojan horse to seduce Bitcoiners
BlackRock's iShares Bitcoin Trust ETF (IBIT) is not just a financial product. It is a machine for converting Bitcoin purists into traditional investors. Launched in January 2024, this fund has already accumulated $48 billion in assets and holds over 765,000 BTC. But the most surprising? 75% of its investors had never purchased an ETF before. Jay Jacobs, head of equity ETFs at BlackRock, confirms:
IBIT has been a gateway for traditional investors into digital assets.
However, the effect is twofold. Once exposed to bitcoin through IBIT, many turn to other BlackRock funds, such as those linked to the S&P 500, gold or AI. A winning strategy for the financial giant, which thus captures a young and tech-savvy clientelewhile strengthening its hold on the market. But be careful! This convergence is not without risk. Indeed, historic Bitcoiners, accustomed to decentralization, could take a dim view of this institutional control over their favorite asset.
There “Great Convergence” : when TradFi and DeFi become one
BlackRock talks about “Great Convergence” to describe the merger between traditional finance, crypto and DeFi. An inevitable development, according to Jay Jacobs:
You're going to hear less and less about TradFi versus DeFi, and more and more about TradFi and DeFi.
The numbers prove him right. Indeed, pre-IPO perpetual futures saw their volume explode, going from 1 billion to 22 billion dollars in a few weeks. Binance, Bybit and Gate dominate this market, proving that crypto traders are ready to adopt hybrid products. But this convergence raises questions. Bitcoin purists will see this as a betrayal of decentralized principles, while institutional investors will see it as a historic opportunity. One thing is certain, the border between the two worlds is blurring very quickly.
Bitcoin: is digital gold becoming an asset like any other?
Bitcoin has long been the symbol of revolt against the traditional financial system. However, with the arrival of ETFs like IBIT, it is becoming… an asset like any other. Is this a victory or a defeat for Bitcoiners? On the one hand, this institutionalization brings legitimacy and liquidity. Indeed, investors can now expose their portfolio to bitcoin without having to manage private keys or wallets.
On the other hand, it distorts the very essence of BTC, a decentralized asset, beyond the control of banks and states. Worse still, some fear that BlackRock and others will end up controlling the Bitcoin market, as they already control that of stocks or bonds. An irony of history, when we know that BTC was created to escape this same system.
The convergence between Bitcoin and TradFi is underway, driven by giants like BlackRock. But at what cost? If IBIT opens doors, it also poses a crucial question… Can BTC stay true to its roots while seducing Wall Street?
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