Investor demand for Bitcoin is increasingly met through ETFs rather than direct purchases. The total market cap of Bitcoin ETFs exceeds $63 billion, with over $2.1 billion in inflows past week.

Growing Popularity of Bitcoin ETFs

During an interview at the Permissionless Conference in Utah, BlackRock's chief investment officer, Samara Cohen, noted that demand is primarily satisfied through investment products such as the BlackRock Bitcoin ETF. She highlighted the growing appetite for the ETF product due to its convenience.

BlackRock Bitcoin ETF Attracting New Investors

According to 13F filings tracking large investor positions, 80% of U.S. buyers of new Bitcoin ETFs are direct investors. Of these, 75% have never invested in iShares products before, indicating BlackRock's success in tapping into a new customer base through its Bitcoin ETF offerings. Currently, BlackRock's Bitcoin ETF manages over $25 billion in assets.

Market Participants and Their Strategies

Other financial giants have also entered the Bitcoin ETF market. In August, Morgan Stanley became the first major bank to allow its financial advisors to sell Bitcoin ETFs from BlackRock and Fidelity to high-net-worth clients. Other companies are still assessing the product before making sales efforts. Recently, Bitcoin surged over 10% in value, nearing the $70,000 mark.

Investors continue to utilize ETFs for Bitcoin acquisition, evidenced by increasing market interest and the involvement of major financial players in this segment.