BlackRock Executive Predicts Bitcoin and Ethereum Become Part of Model Portfolios by 2025

BlackRock executive Samara Cohen believes that Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) will soon be included in model portfolios created by financial advisors. These portfolios consist of a variety of investments and are curated by professionals in the financial services industry. Cohen, who serves as BlackRock’s chief investment officer of ETFs and index investments, reveals that major wirehouses such as Morgan Stanley, Wells Fargo, and UBS are currently evaluating the risk analytics of these top two cryptocurrencies. While Bitcoin and Ethereum are distinct asset classes with different use cases, they are being considered for their potential as portfolio diversifiers. Cohen anticipates that by the end of this year and into 2025, model portfolios will incorporate allocations to Bitcoin and Ethereum ETFs, shedding light on how investors are leveraging these assets. The regulatory approval for spot Bitcoin ETFs was granted by the U.S. Securities and Exchange Commission (SEC) earlier this year, and Ethereum ETFs have recently been launched as well.