Jay Jacobs, U.S. Head of Thematics and Active Equity ETFs at BlackRock, discussed BlackRock’s longer-term perspective on blockchain and the path towards releasing the iShares Bitcoin Trust ETF (IBIT) in an interview conducted during the recent VettaFi CryptoCurrency Symposium.
He clarified that the beginning of the iShares Bitcoin Trust was driven by investor desire to include a variety of asset classes within the well-known and effective ETF framework. Jacobs highlighted the three main benefits of the Bitcoin ETF: quality, accessibility, and simplicity.
BlackRock’s attempt simplifies the “complexities” involved with direct crypto investing while simultaneously providing exposure to Bitcoin in a conventional ETF format, appealing to investors looking to diversify their portfolios with digital assets.
According to Jacobs, the establishment of IBIT was a response to investors’ shifting needs in a dynamic economic environment, as well as the firm’s technological prowess and risk management skills.
Jacobs also explored the larger framework of blockchain technology, which forms the basis of Bitcoin. According to him, blockchain is a decentralized, frequently open ledger that facilitates peer-to-peer transactions without the need for middlemen and monitors ownership.
Jacobs said that this technology has applications far beyond cryptocurrency, such as supply chain management, where it may improve efficiency, security, and transparency.
Regarding blockchain’s adoption curve, Jacobs thinks the technology is still in its early phases of development. It is yet too early to completely achieve its extensive application across businesses and governments, despite its great promise. According to him, blockchain has a lot of practical applications, especially in supply chain management.
According to Jacobs, blockchain technology can enhance product safety, expedite payment procedures, and rapidly locate manufacturing problem sites, resulting in more responsive and effective operations.
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