BlackRock’s Samara Cohen reportedly says registered investment advisors are slow to adopt spot Bitcoin (BTC) exchange-traded funds (ETFs).
Cohen, who serves as BlackRock’s CIO of ETF and index investing, says self-directed investors likely make up 80% of Bitcoin ETF investments. reports CNBC.
She also notes that hedge funds and brokers have been accumulating Bitcoin ETF shares.
But Cohen says one investor cohort has yet to take the plunge into the investment vehicle.
“I would call them on their guard… That’s their job…
An investment advisor is a confidant for his clients. This is an asset class that historically has seen price volatility at times of 90%, and their job is basically to build portfolios and do the risk analysis and due diligence. They are doing that now.”
Cohen believes that registered investment advisors (RIAs) are still in the early stages of the Bitcoin ETF adoption story.
“This is a moment in terms of really bringing forward important data, risk analyses [and determining] the role bitcoin can play in a portfolio, what type of allocation is appropriate given an investor’s risk tolerance and liquidity needs. That’s what an advisor is supposed to do, so I think this journey we’re on is exactly the right one and they’re doing their job.”
In April, Morgan Creek’s Mark Yusko predicted that investment advisors may allocate about 1% of the funds they manage on behalf of the baby boomer generation to tracking Bitcoin ETFs in the coming months.
“The boomers did that too [about] $30 trillion with these financial advisors… There’s going to be $300 billion, I believe – that’s 1% of the $30 trillion – that’s coming into this space. That is actually more money than has ever been converted into Bitcoin in fifteen years.”
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