Bitcoin ETFs Face Skepticism Among Registered Investment Advisors, BlackRock CIO Reveals
Samara Cohen, BlackRock’s CIO of ETF and index investments, observes a cautious approach among registered investment advisors (RIAs) towards spot Bitcoin exchange-traded funds (ETFs).
According to CNBC, Cohen notes that while self-directed investors constitute about 80% of Bitcoin ETF investments, hedge funds and brokerages are actively acquiring Bitcoin ETF shares. However, RIAs, who serve as fiduciaries and prioritize risk analysis and due diligence for their clients, are proceeding cautiously due to Bitcoin’s historical price volatility.
Cohen believes RIAs are in the initial stages of evaluating Bitcoin ETFs, emphasizing the importance of data, risk analytics, and determining Bitcoin’s role in portfolios. Mark Yusko from Morgan Creek predicts potential 1% allocations from advisors managing funds for baby boomers, potentially amounting to $300 billion influx into Bitcoin, a significant milestone in Bitcoin’s adoption trajectory.
Clever Robot News Desk 20th June 2024
