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Jay Jacobs, Head of Equity ETFs at BlackRock, remarked that emerging AI prospects are increasingly found outside the conventional technology sectors.
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Fields such as materials, utilities, and digital infrastructure are likely to gain from AI-driven physical enhancements.
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Despite the growing presence of institutional investors, Jacobs argued Bitcoin’s role as a diversifier remains valid.
According to Jay Jacobs, U.S. Head of Equity ETFs at BlackRock, the ownership of Bitcoin by Wall Street has transformed, but the reasons for its demand among investors have not changed.
He stated that Bitcoin (BTC) continues to serve as a means of portfolio diversification, and that the most promising AI opportunities are now emerging beyond the tech sector.
During a recent appearance on Anthony Pompliano’s podcast, Jacobs highlighted that the current landscape of AI reveals a significant disparity; there is a surge in demand while supply is unable to keep pace. He explained how large language models (LLMs) are already capable of generating code to enhance themselves, while corporate expenditure decisions can be made in mere days or weeks, in stark contrast to the much slower movement of physical materials.
Jacobs noted that the timeline for new copper production spans several years, establishing a zinc mine for photonics requires substantial time, and semiconductor fabrication plants typically take around four years to build.
Opportunities Beyond Technology
Jacobs pointed out that this imbalance is likely why investors might be misplacing their focus. “Many still perceive AI merely as a tech narrative,” he stated. “In reality, it spans sectors like healthcare, legal, and consumer goods.”
As the world’s largest asset management firm with $14 trillion in assets, BlackRock has outlined the “AI value chain,” which involves power providers, data centers, chip fabricators, data custodians, and model creators.
Jacobs emphasized that lucrative opportunities lie “outside the tech realm at present,” particularly in materials, utilities, and real estate sectors. “While software can scale effortlessly, scaling computing power requires significant physical resources,” he remarked.
The company has divided this physical infrastructure into distinctive products, including power and digital infrastructure exchange-traded funds (ETFs).
Bitcoin Remains a Diversification Tool
Jacobs countered the notion that Bitcoin’s (BTC) identity had changed due to increased Wall Street involvement. He stated that during periods of geopolitical tension or concerns about fiat currency depreciation, Bitcoin is poised to thrive, especially when traditional stocks and bonds may falter.
“The intrinsic nature of Bitcoin as a diversifying asset still holds strong, even as the demographic of its investors has evolved in recent years,” Jacobs added.