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BlackRock Exec: Advisors ‘Wary’ of Bitcoin ETFs on Slow Adoption Journey


Samara Cohen, BlackRock’s CIO of ETF and index investments, says financial advisors are gradually adopting bitcoin ETFs, with about 80% of purchases coming from self-directed investors. Advisors remain cautious due to bitcoin’s volatility and nascent status.

Why It Matters

As financial advisors are fiduciaries to their clients, their cautious approach to bitcoin ETFs reflects their responsibility to conduct thorough risk analysis and due diligence. The adoption of these ETFs by advisors could significantly impact the crypto market and the way traditional finance interacts with digital assets.

By the Numbers

  • 80% of bitcoin ETF purchases likely come from self-directed investors
  • Bitcoin has experienced 90% price volatility at times in history
  • Some investors consider a 1% allocation to bitcoin as a safe, comfortable amount

What’s Next

As more data, risk analytics, and information on the role of bitcoin in portfolios become available, financial advisors may become more comfortable recommending bitcoin ETFs to their clients. The adoption journey is expected to be gradual, with advisors taking time to assess the appropriate allocation based on their clients’ risk tolerance and liquidity needs.

The Big Picture

Bitcoin ETFs serve as a bridge between traditional finance and the crypto world, providing investors with a regulated and familiar investment product to gain exposure to bitcoin. The cautious approach taken by financial advisors reflects the ongoing paradigm shift as the world of traditional finance adapts to the emergence of digital assets. As adoption grows, bitcoin ETFs could play a significant role in shaping the future landscape of the crypto market.

What factors do you think will most influence the adoption of bitcoin ETFs by financial advisors? Leave a comment below with your thoughts.

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