Bitcoin

Advisors Cautious About Bitcoin ETF Adoption: BlackRock Executive

Published

7 months ago

17 June, 2024

Advisors ‘cautious’ with Bitcoin ETF adoption, says BlackRock exec

BlackRock’s chief investment officer for ETF and index investing, Samara Cohen, hinted that financial advisors remain “cautious” about adopting spot Bitcoin (Bitcoin) exchange-traded funds (ETFs), despite the success recorded by the investment vehicle.

Despite attracting more than $50 billion in investments since they were launched in January 2024, Bitcoin ETFs still face slow acceptance among financial advisors.

According to For Cohen, approximately 80% of Bitcoin ETF purchases originate from autonomous investors who made their own allocation through an online brokerage account.

Cohen highlighted that financial advisors remain cautious about jumping on the spot Bitcoin ETF bandwagon due to their fiduciary responsibilities to clients.

Given Bitcoin’s history of significant price volatility, advisors are rigorously analyzing its role in portfolios and determining appropriate allocations based on the investor’s risk tolerance and liquidity needs.

She emphasized that this process of data evaluation and risk analysis is crucial for consultants to carry out their roles effectively amid ongoing market uncertainty.

The leading cryptocurrency has undergone significant fluctuations over time, posing a substantial risk to potential investors. Additionally, the relatively brief history of Bitcoin ETFs contributes to financial advisors’ skepticism, as the limited track record raises doubts about their reliability and long-term performance, she notes.

Another significant impediment is the regulatory landscape. The financial sector continues to struggle to establish a clear regulatory framework for cryptocurrencies, which introduces uncertainty and caution among financial advisors. The absence of definitive guidelines and the possibility of regulatory adjustments further complicate recommending Bitcoin ETFs to clients.

Despite these challenges, Bitcoin ETFs hold promise as a conduit between cryptocurrency and conventional finance. They offer a regulated and more accessible path for investors to participate in the cryptocurrency market.

However, slow uptake among financial advisors highlights the need for better education and awareness to overcome existing barriers.

Regulatory changes

The U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin ETFs has had a profound impact impact in the cryptocurrency market, especially with issuers like ARK and 21Shares.

Prominent Issuers That Secured Bitcoin ETF approvals are now seeking the same for Ethereum (ETH). This development has caught the attention of investors as they seek exposure to the second-largest cryptocurrency in terms of market capitalization.

However, the SEC expressed caution amid this enthusiasm. SEC Chairman Gary Gensler emphasized that most crypto assets are viewed as investment contracts and therefore fall under federal securities laws.

This stance diverges from the SEC’s previous approach, which focused primarily on the commodities and futures aspects of cryptocurrencies.

This regulatory classification adds complexity to the approval process for Ethereum ETFs, which operate on a different protocol than Bitcoin.

Still, Gensler wait fully approve spot Ether ETFs by the end of summer 2024.

The SEC had already given initial information approval to a group of ETFs, and final registration requirements, known as S-1 filings, are currently being processed by staff. Once these registrations are approved, the new ETFs can be listed, providing the market with easy-to-trade funds containing real Ether, similar to previously established Bitcoin spot ETFs.

During a budget hearing before the Senate Appropriations Committee, Gensler highlighted the smooth running of the registration process for these ETFs. He noted that individual issuers are moving diligently through the registration stages, proceeding efficiently.

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Bitcoin

Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Published

6 months ago

1 August, 2024

Financial Block Staff

Big Tech Outperforms Bitcoin (BTC) as Trump Deal Weakens Token

Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.

The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

6 months ago

1 August, 2024

Financial Block Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

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ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

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ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin

Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Mining Profitability Surges in June as Market Adjusts for Halving: Jefferies

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Bitcoin

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

Published

6 months ago

1 August, 2024

Financial Block Staff

Why Trump Wants the US Government to Have a “National Stockpile” of Bitcoin

At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.

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