BlackRock, one of the world’s largest asset management firms, has released a new statement regarding Bitcoin (BTC) and its exchange-traded funds (ETFs). According to Samara Cohen, BlackRock’s Chief Investment Officer of ETFs and Index Investments, the Bitcoin ETFs that launched earlier this year have been gradually gaining adoption among financial advisors.
Cohen revealed during the Coinbase State of Crypto Summit in New York that approximately 80% of Bitcoin ETF purchases have been made by self-directed investors, most likely through online brokerage accounts. She also mentioned that hedge funds and brokerage firms have shown interest in these ETFs, as indicated by 13-F filings in the last quarter. However, registered investment advisors have approached the asset class more cautiously.
Cohen emphasized that financial advisors have a responsibility to exercise caution when making investment decisions for their clients. Given the historical price volatility of Bitcoin, which has at times reached 90%, these advisors are focused on building portfolios, conducting risk analyses, and performing thorough due diligence. Cohen believes that this cautious approach is necessary and part of their job as trusted consultants.
She further stated that this moment is crucial for presenting important data, conducting risk analyses, and determining the role Bitcoin can play in a portfolio. According to Cohen, Bitcoin ETFs serve as a bridge between crypto and traditional finance, especially for investors who want to allocate their risk to BTC without having to manage risk across two different ecosystems. She highlighted that the existing bridges to crypto before the launch of ETFs were inadequate for certain investors’ needs.
As a final note, it is important to mention that this statement from BlackRock is not intended as investment advice.