BlackRock Says Its Investment Product Played Key Role in Reducing Bitcoin Volatility

BlackRock's Head of U.S. Equity ETFs Jay Jacobs says Bitcoin's volatility has decreased significantly over the past year, and their investment product IBIT (NASDAQ:IBIT) played a part in that.

Jacobs appeared on Anthony Pompliano's podcast Thursday to discuss how the buildout of BlackRock's IBIT and options market around it contributed to Bitcoin's reduced volatility. He stated that the number of participants has increased, with more long-term buyers acting as a counterbalance to short-term traders.

This shift in investor base has made Bitcoin accessible to institutions that previously couldn't justify the risk. Jacobs believes that when investors are concerned about geopolitics or fiat currency debasement, Bitcoin should benefit due to its fundamental diversifying nature.

BlackRock's strategy is focused on concentration rather than breadth, with Bitcoin and Ethereum (CRYPTO: ETH) making up two-thirds to three-quarters of the total digital asset market cap. The firm aims to be the best at these two assets before expanding their lineup.