BlackRock’s head of U.S. equity ETFs, Jay Jacobs, said Bitcoin’s volatility has compressed from about 80 to the 35%-40% range. He attributed the shift to several factors already taking shape in the market: the growth of ETFs, the development of options, deeper liquidity, and an expanding base of long-term holders. Jacobs also said BlackRock had initially expected institutional custody to be the main reason long-term holders would move into ETFs, but client feedback pointed to another use case. Some investors want Bitcoin exposure inside traditional financial accounts so it can be used more easily in lending and derivatives markets. He added that some high-net-worth holders are looking to use ETF shares as collateral to access liquidity instead of selling their positions outright.
BlackRock’s head of U.S. equity ETFs, Jay Jacobs, said Bitcoin volatility has dropped from about 80 to the 35%-40% range. He said ETFs, options, deeper liquidity, and a larger group of long-term holders have all contributed to the change.
Jacobs said BlackRock had initially expected institutional custody to be the main reason long-term holders would move into ETFs. Client feedback, however, showed another demand: putting Bitcoin exposure into traditional financial accounts so it can be used in lending and derivatives markets.
He added that some high-net-worth holders want to use ETF shares as collateral to obtain liquidity rather than sell their holdings directly.
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