With a Bitcoin product getting approved earlier this year, asset management firm BlackRock has projected that active global ETFs will reach $4 trillion in assets by 2030. Indeed, Bloomberg reports that more than $160 billion has entered these strategies in 2024 alone.
BlackRock’s iShares Bitcoin Trust (IBIT) has been a tremendous success for the firm. Its approval played an important role in the firm’s assets under management surpassing $10.6 trillion in the second quarter of the year. The figure marks a 13% increase year-over-year.
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BlackRock Has High Hopes For ETFs After Bitcoin and Ethereum Approval
Exchange-traded funds have been immensely important for the crypto market in 2024. January saw Bitcoin get the first crypto-based offering in the US, followed closely by Ethereum. Although the latter has yet to launch, BTC reached an all-time high of $73,000 just three months after the product began trading.
Amidst Bitcoin’s success, BlackRock is predicting that active ETFs will reach $4 trillion in assets by 2030. The firm is preparing to capitalize on the interest by gaining even more market share entering the next several years. Of the $720 billion in US ETFs this year, the asset manager had just $26 billion.
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“There is growing demand for active strategies generally- and in particular in this environment- as we see higher volatility, we see greater dispersion between individual stocks and sectors,” the firm’s US head of thematic and active ETFs, Jay Jacobs, said.
“This is being coupled with the secular trend of ETF-ization, where a large portion of investors prefer to use ETFs as their vehicle of choice,” he added. This is great news for crypto. Ethereum is poised to follow Bitcoin, with its ETF set to officially launch July 23rd.
More cryptocurrencies are expected to follow suit. Bloomberg reporter Eric Balchunas recently said the “dam is broken,” in regard to crypto ETFs. He predicted that Solana would be the next asset to receive the vehicle. Its presence would solidify the asset classes place within institutional investment.