The landscape of digital asset investment is undergoing a seismic shift, and at the heart of this transformation lies a surprising trend: most new buyers of spot bitcoin ETFs have no prior experience in the crypto market. According to Samara Cohen, Chief Investment Officer of ETFs and Index Investments at BlackRock, 75% of direct investors in iShares Bitcoin Trust (IBIT) had never owned an iShares product before—signaling a wave of newcomers entering crypto through traditional finance channels.
This insight, shared during the Permissionless Conference in Utah and later with CNBC, underscores a pivotal moment in financial history: institutional-grade investment vehicles are now serving as on-ramps for crypto adoption.
Record Inflows Signal Growing Institutional Trust
Over the past five trading days, spot bitcoin ETFs have seen over $2.1 billion in net inflows**, with BlackRock alone accounting for half of that volume. The total market capitalization across all eleven spot bitcoin ETFs has surged past **$63 billion, supported by nearly $20 billion in cumulative flows since launch.
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Bitcoin’s price has climbed above $68,300, its highest level since July, fueled by strong demand for regulated exposure. Year-over-year, bitcoin has appreciated by 140%, significantly outperforming the S&P 500 and reinforcing its status as a high-growth asset class.
Alongside this rally, broader crypto-aligned stocks have risen 24% in a single week—their best performance since February—while on-chain activity reflects growing confidence. According to Chainalysis, North America remains the largest crypto market globally, representing nearly 23% of global trading volume, with $1.3 trillion in on-chain value received between July 2023 and July 2024.
Bridging Two Worlds: Educating Crypto Investors on ETF Benefits
Historically, the narrative around ETFs was about educating traditional investors on crypto. But Cohen revealed an unexpected twist: the education is going both ways.
“We expected to educate ETF investors about bitcoin,” Cohen said. “But what we found was that we were also educating crypto investors about the benefits of the ETP wrapper.”
For years, U.S. investors relied on centralized exchanges like Coinbase to buy and store digital assets—often facing security risks, custody challenges, and regulatory uncertainty. The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission in January changed that dynamic overnight.
Now, investors can gain exposure to bitcoin through regulated, transparent, and tax-efficient structures—without managing private keys or navigating complex wallets.
This shift is particularly appealing to wealth management clients, many of whom have formally requested their advisors to include spot crypto products in portfolios. As a result, firms like Morgan Stanley have taken bold steps: in August, it became the first major bank to allow its 15,000 financial advisors to recommend BlackRock’s and Fidelity’s bitcoin ETFs to clients with a net worth exceeding $1.5 million.
Unlike some peers, Morgan Stanley did not conduct in-house due diligence before enabling these recommendations—a sign of growing trust in third-party product validation.
A Global Perspective: Crypto Adoption Beyond the U.S.
While the U.S. leads in ETF innovation, Europe offers a contrasting view. Jan van Eck, CEO of VanEck, noted during the same conference that only a few private banks across Europe have approved meaningful investments in bitcoin.
“Only a few private banks have approved significant investment in bitcoin or anything else,” Van Eck observed. Despite this, his firm’s European crypto ETPs hold approximately $2 billion in assets, with much of the volume driven by retail investors.
BlackRock already offers 12 token-based products in Europe, highlighting its long-term commitment to digital assets—even as regulatory clarity lags behind market demand.
Van Eck added: “Wealth manager allocators have not been allocating effectively. In reality, they're barely getting started.”
Why ETFs and Blockchain Solve Similar Problems
Cohen drew a compelling parallel between ETFs and blockchain technology: both emerged as responses to systemic issues around transparency and trust.
“ETFs played a critical role in TradFi after the 2008 crisis by increasing access, transparency, and growth,” she said.
Interestingly, the bitcoin whitepaper was released on October 31, 2008, just as G20 leaders convened to address the financial crisis and improve public reporting standards. Both movements—ETFs in traditional finance and blockchain in decentralized systems—aimed to rebuild trust through structural innovation.
BlackRock’s success with ETFs over the past 15 years has been built on counterparty clearing, multilateral trading, and rigorous risk management—principles that now resonate deeply within DeFi ecosystems.
“Over the past 15 years, DeFi has become a reality,” Cohen stated. “Was this a victory for Bitcoin and ETPs? In my opinion, it was a win for investors—as long as we can successfully integrate these ecosystems that aim to achieve the same objectives.”
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Frequently Asked Questions (FAQ)
Q: What percentage of BlackRock's bitcoin ETF buyers are new to crypto?
A: According to Samara Cohen, 75% of direct investors in iShares Bitcoin Trust (IBIT) had no prior ownership of iShares products—indicating they are new to both ETFs and likely crypto.
Q: How much money has flowed into spot bitcoin ETFs recently?
A: Over the last five trading days, spot bitcoin ETFs attracted over $2.1 billion in net inflows, with BlackRock responsible for roughly half.
Q: Are financial advisors now recommending bitcoin ETFs?
A: Yes. Morgan Stanley became the first major bank to authorize its 15,000 advisors to pitch bitcoin ETFs to high-net-worth clients (over $1.5 million net worth).
Q: How does bitcoin’s performance compare to traditional markets?
A: Bitcoin has risen 140% from the same quarter last year, significantly outperforming the S&P 500 and demonstrating strong investor appetite.
Q: What role do ETFs play in crypto adoption?
A: ETFs provide a regulated, tax-efficient, and familiar investment vehicle that bridges traditional finance and digital assets—making them ideal entry points for newcomers.
Q: Is there regulatory clarity for crypto in the U.S.?
A: Not yet. While spot bitcoin ETFs are approved, broader legislative frameworks are still pending. Lawmakers must establish clear rules before full institutional comfort is achieved.
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Final Thoughts: A New Era of Financial Convergence
The data is clear: mainstream investors are entering crypto—not through exchanges, but through ETFs. With 75% of buyers being newcomers, BlackRock’s IBIT is not just capturing capital; it’s expanding the investor base.
As education bridges TradFi and DeFi worlds, and as regulatory clarity slowly emerges, the integration of blockchain principles into traditional finance could redefine transparency, access, and trust for generations to come.
For those watching from the sidelines, now may be the time to understand how these innovations are converging—and how they might shape your financial future.