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The launch of Bitcoin exchange-traded funds (ETFs) in January marked a significant milestone. However, financial advisors are approaching these new investment vehicles with caution.
BlackRock’s Chief Investment Officer of ETF and Index Investments, Samara Cohen, provided insights during the Coinbase State of Crypto Summit in New York City.
Cohen explained that about 80% of Bitcoin ETF purchases are currently made by self-directed investors using online brokerage accounts. According to last quarter’s 13-F filings, hedge funds and brokerages have also been active buyers. However, registered investment advisors remain hesitant.
Cohen stated, “I would call them wary… That’s their job.” She emphasized the fiduciary responsibility that advisors have to their clients, noting that Bitcoin’s historical price volatility, which has reached 90% at times, necessitates thorough risk analysis and due diligence.
Financial advisors meticulously evaluate data and risk analytics to determine Bitcoin’s appropriate role in investment portfolios, considering factors such as risk tolerance and liquidity needs.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Bitcoin ETF Historical Holdings. Source: CryptoQuant
While financial advisors remain cautious, some analysts hold a bullish outlook on Bitcoin’s future.
Bernstein, a major asset manager with $725 billion in assets, predicts that Bitcoin’s price could reach $1 million by 2033. The new forecast suggests a cycle-high of $200,000 by 2025. This prediction is driven by unprecedented demand from spot ETFs and Bitcoin’s limited supply.
Bernstein’s previous estimate was $150,000 for 2025, reflecting their growing optimism about Bitcoin’s potential.
Read more: Bitcoin (BTC) Price Prediction 2024 / 2025 / 2030
WAX co-founder William Quigley also commented on the proliferation of ETFs for other cryptocurrencies like Solana. “Wall Street is greedy,” Quigley said, suggesting that the success of Bitcoin ETFs will spur similar products.
However, he cautioned that if the momentum slows, ETF providers might shift focus or shut down underperforming ETFs due to a lack of demand.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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The post BlackRock CIO Says Financial Advisors Aren’t Buying Bitcoin ETFs appeared first on Panther AI.
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BlackRock’s Chief Investment Officer of ETF and Index Investments, Samara Cohen, provided insights during the Coinbase State of Crypto Summit in New York City.
Why Financial Advisors Shun Bitcoin ETFs
Cohen explained that about 80% of Bitcoin ETF purchases are currently made by self-directed investors using online brokerage accounts. According to last quarter’s 13-F filings, hedge funds and brokerages have also been active buyers. However, registered investment advisors remain hesitant.
Cohen stated, “I would call them wary… That’s their job.” She emphasized the fiduciary responsibility that advisors have to their clients, noting that Bitcoin’s historical price volatility, which has reached 90% at times, necessitates thorough risk analysis and due diligence.
Financial advisors meticulously evaluate data and risk analytics to determine Bitcoin’s appropriate role in investment portfolios, considering factors such as risk tolerance and liquidity needs.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Bitcoin ETF Historical Holdings. Source: CryptoQuant
While financial advisors remain cautious, some analysts hold a bullish outlook on Bitcoin’s future.
Bernstein, a major asset manager with $725 billion in assets, predicts that Bitcoin’s price could reach $1 million by 2033. The new forecast suggests a cycle-high of $200,000 by 2025. This prediction is driven by unprecedented demand from spot ETFs and Bitcoin’s limited supply.
Bernstein’s previous estimate was $150,000 for 2025, reflecting their growing optimism about Bitcoin’s potential.
Read more: Bitcoin (BTC) Price Prediction 2024 / 2025 / 2030
WAX co-founder William Quigley also commented on the proliferation of ETFs for other cryptocurrencies like Solana. “Wall Street is greedy,” Quigley said, suggesting that the success of Bitcoin ETFs will spur similar products.
However, he cautioned that if the momentum slows, ETF providers might shift focus or shut down underperforming ETFs due to a lack of demand.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source link
The post BlackRock CIO Says Financial Advisors Aren’t Buying Bitcoin ETFs appeared first on Panther AI.
Continue reading...