Bitcoin Has the Potential to Reach $5.4 Trillion, According to BlackRock Exec

Jay Jacobs, BlackRock’s US Head of Thematics and Active ETFs, believes there’s still a massive opportunity for Bitcoin growth, projecting the market could expand to around $5.4 trillion in the future.

Jacobs shared his insights during the Digital Assets Conference in Brazil, which was organized by Mercado Bitcoin alongside CME Group, Deribit, and Fireblock.

BlackRock, as the world’s largest asset manager and one of the first firms to secure Bitcoin ETF approval in the U.S., has been monitoring increasing investor demand for Bitcoin . Jacobs noted that clients have been looking for assets beyond traditional stocks and bonds, especially as correlations between these assets have made diversification more challenging.

In response to these trends, BlackRock has significantly increased its Bitcoin holdings, now managing around 370,000 BTC—making it one of the largest holders globally, trailing only Binance and the enigmatic Bitcoin creator, Satoshi Nakamoto.

Jacobs emphasized the importance of Bitcoin in offering liquidity and portfolio diversification, particularly for sophisticated investors with a high tolerance for market volatility. He also highlighted BlackRock’s commitment to making Bitcoin more accessible and enhancing investor education around digital assets.

According to Jacobs, Bitcoin serves as a financial alternative, while Ethereum aligns more with the growing adoption of blockchain technology. He sees broader trends like geopolitical fragmentation, the rise of AI, and shifting demographics as potential tailwinds for the digital assets market, suggesting that younger, tech-savvy generations may drive further adoption in the coming years.