Whether investors are new to bitcoin or looking for an easier access point, it’s important to understand how bitcoin works, what drives its price, and the risks and considerations of investing through an ETF structure.
 

Digital assets enter the mainstream

Interest in digital assets is already significant among Australian investors.

BlackRock’s 2026 iShares ETF Insights research – based on a survey of more than 3000 Australians - found that 18.3% already own cryptocurrency. The research also revealed that cryptocurrency ownership is more concentrated among younger Australian men, with more than 80% of crypto investors under the age of 45, and approximately two-thirds male.

These findings highlight the growing role that digital assets are playing in Australian portfolios and suggest that bitcoin - the largest cryptocurrency by market value - is moving beyond a niche investment audience for some Australian investors.
 

Understanding bitcoin’s growth – and volatility

Unlike shares or bonds, bitcoin does not generate earnings, dividends or cash flows. Instead, its value is primarily driven by supply and demand.

Bitcoin has a predetermined supply, meaning there is a fixed amount that can ever exist. As a result, shifts in demand can have a significant impact on price. For investors considering exposure, volatility should be viewed as a defining characteristic of the asset rather than an exception.

Recent price movements provide a reminder of this volatility. Bitcoin has fallen significantly from its peak of around US$126,000 last year and, at the time of writing, is trading closer to US$62,000 [1]. However, for investors who acquired bitcoin several years ago, it may still have provided materially different outcomes over the longer term, depending on the price they paid.

For many investors, a key question is whether bitcoin will become more widely adopted over time as consumers and businesses increasingly embrace blockchain – the technology underpinning bitcoin which enables secure peer-to-peer transactions without the need for intermediaries such as banks.

As the largest and most established digital asset, bitcoin's long-term value proposition may be seen by some investors as closely tied to its potential for broader adoption. Changing views on bitcoin’s future have contributed to many of the sharp rallies and selloffs seen throughout its history.
 

Why investors are turning to ETFs

Bitcoin ETFs allow investors to gain exposure to bitcoin through a traditional brokerage account. Unlike investing directly, investors do not need to establish digital wallets, manage custody arrangements or purchase bitcoin themselves.

For many investors, the appeal lies in being able to access bitcoin through a familiar, simple and low-cost investment structure alongside the rest of their portfolio - as the table below illustrates.
 

Direct vs exchange-traded cryptocurrency investing

Source: BlackRock as of January 2026. For illustrative purposes only
 

iShares’ ETF Investor Insights research found that Australian cryptocurrency investors are also highly engaged with ETFs. Among current crypto investors, 71.1% said they were likely to invest in ETFs over the next 12 months, compared with 52.7% of investors overall.

These findings suggest many investors interested in digital assets are also looking for accessible ways to invest in them.
 

A question of portfolio fit

In BlackRock's view, one of the most common questions investors ask is whether, and to what extent, bitcoin exposure may be suitable within a portfolio.

Bitcoin differs from traditional asset classes because it has no underlying cash flows that can be used to estimate future returns. Instead, the investment case for investors, subject to their investment goals and risk-profile is linked to whether an investor believes adoption will continue to increase over time.

Some investors choose to include bitcoin exposure within diversified portfolios, while others may decide the risks outweigh the potential benefits.

BlackRock Investment Institute research has explored the impact of different bitcoin allocations within hypothetical portfolios of certain classes of investors, including allocations of 1-2%. In a traditional portfolio consisting of 60% equities and 40% bonds, this research suggests that a 1-2% allocation to bitcoin may represent a reasonable range for some investors. The suitability of any allocation will depend on an investor's objectives, risk tolerance and circumstances.

At that level, BlackRock’s research indicates bitcoin’s contribution to overall portfolio risk is broadly comparable to the contribution made by adding each of the ‘Magnificent Seven’ technology stocks in the United States to the portfolio.  BlackRock’s findings is that going beyond 2% in a hypothetical portfolio can disproportionately increase bitcoin’s share of overall portfolio risk and increase exposure to the possibility of sharp drawdowns.

For many investors, the key question is whether bitcoin will become more widely adopted over time as consumers and businesses increasingly embrace blockchain – the technology underpinning bitcoin which enables secure peer-to-peer transactions without the need for intermediaries such as like banks. 

Access doesn’t remove risk

Like any investment vehicle, bitcoin ETFs come with both benefits and risks. It’s important to remember that bitcoin remains highly volatile, and investors can experience significant gains and losses over relatively short periods.

Investors should also recognise that for some market participants, the investment case for bitcoin depends heavily on future adoption, which remains uncertain.

As with any investment decision, any allocation should reflect an investor’s objectives, risk profile and overall portfolio strategy.
 

Conclusion

Bitcoin has undergone a remarkable transformation over the past 15 years, evolving from a niche digital asset into a mainstream investment consideration for many investors.

The iShares research suggests digital assets already play a meaningful role in many portfolios, with nearly one in five Australian survey participants reporting they currently own cryptocurrency.

At the same time, the strong level of ETF interest among cryptocurrency investors suggests growing demand for investment structures that are more cost-efficient, secure and simple compared to digital wallets.

Investors who are researching bitcoin exposure may also consider how ETF structures differ from direct investment. As with any investment, the key is understanding both the opportunities and the risks, and considering how any allocation may fit within a broader portfolio.

Ultimately, the decision to invest should reflect an individual's objectives, risk tolerance and long-term investment goals.
 

From ASX

Investing in Crypto has information on the features, benefits, and risks of investing in digital assets such as cryptocurrencies, coins or tokens.

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[1] Source: Coinmarketcap.com