BlackRock’s Samara Cohen said that Registered Investment Advisors (RIAs) are avoiding purchasing physical Bitcoin ETFs.
Data from CNBC shows that 80% of BTC ETF investments are made by individual investors.
She noted that hedge funds and brokerages are buying stock Bitcoin ETFs. However, Cohen emphasized that there is a group of investors who are not yet enthusiastic about this investment tool.
“Caution… I would say… they are diligent… investment advisors are the trusted faces of clients. This is an asset that has experienced 90% price fluctuations over time, and their job is to build portfolios and conduct risk analysis due diligence. They are working hard now,” Cohen said.
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She believes that investment advisors are just starting to incorporate Bitcoin ETFs into their strategies.
“Now is the time to provide key information, conduct risk analysis, and determine how BTC fits into portfolios, such as establishing appropriate ratios based on investors’ risk tolerance and liquidity needs. This is part of the advisor’s job, so I think this is the right way, this is how they should do their job,” Cohen said.
Morgan Creek co-founder Mark Yusko predicts that in the coming months, financial advisors from the baby boomer generation will invest about 1% of their holdings in cryptocurrency-based securities. Baby boomers control $30 trillion through financial advisors…”
“I think $300 billion—their 1%—will enter this space. This is actually more than the amount traded in Bitcoin over the past fifteen years,” Yusko predicts.
