BlackRock Official Provides Insight on Bitcoin Spot ETFs
A representative from BlackRock recently discussed the current status and adoption rates of Bitcoin Spot ETFs in a statement.
During the Coinbase State of Crypto Summit in New York, Samara Cohen, Chief Investment Officer of ETFs and Index Investments at BlackRock, shared that the Bitcoin exchange-traded funds (ETFs) launched in January have been gradually gaining traction among financial advisors. Cohen revealed that around 80% of Bitcoin ETF purchases are being made by self-directed investors, primarily through online brokerage accounts. One of the funds introduced earlier this year was the iShares Bitcoin Trust (IBIT).
Cohen also highlighted the active involvement of hedge funds and brokerage firms in purchasing Bitcoin ETFs, as indicated by 13-F filings in the previous quarter. However, registered investment advisors have been more cautious in their approach.
Describing financial advisors as cautious due to their responsibility to clients, Cohen stated, “An investment advisor is trustworthy to their clients. This is an asset class that has had 90% price volatility at times in history, and their job is really to build portfolios, do risk analysis and due diligence. That’s what they’re doing right now.”
In terms of presenting crucial data, conducting risk analysis, and determining Bitcoin’s role in a portfolio, Cohen emphasized the significance of this moment. She believes that Bitcoin ETFs serve as a link between crypto and traditional finance, particularly for investors looking to allocate their risk to BTC without managing it across two different ecosystems. Cohen noted that before the introduction of ETFs, the existing bridges to crypto were insufficient for certain investors’ requirements.
It is essential to note that the information provided does not constitute investment advice. To explore a variety of cryptocurrencies for investment, you can avail a 20% COMMISSION DISCOUNT by registering with Binance exchange through this link.
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