Bitcoin
Advisors ‘cautious’ about bitcoin ETFs are on slow adoption journey, says BlackRock exec
- Bitcoin exchange-traded funds made their debut in January, but financial advisors have been slow to adopt them.
- Financial advisors’ concerns regarding bitcoin include the cryptocurrency’s volatile prices and relatively short track record.
- Bitcoin ETFs can act as a bridge between cryptocurrency and traditional finance, according to Samara Cohen, director of ETF investing and index investing at BlackRock.
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The long awaited Bitcoin exchange traded funds released in Januaryand financial advisors are on their way — albeit gradually — to adopting them, according to BlackRock’s Samara Cohen.
For now, about 80% of bitcoin ETF purchases likely came from “self-directed investors who made their own allocation, often through an online brokerage account,” she said, speaking at Coinbase State of Crypto Summit in New York City on Thursday. O iShares Bitcoin Trust (IBIT) was among the funds to debut earlier this year.
Cohen, director of ETF and index investments at BlackRock, noted that hedge funds and broker-dealers have also been buyers, based on last quarter’s 13-F filings, but registered investment advisors have been a bit more “cautious.” ”.
CNBC recently interviewed its Advisory Board about why they and their colleagues are so cautious about the new products, which represent a familiar, regulated investment product for a new asset class that has generated significant interest in recent years. Responses ranged from bitcoin’s notorious price volatility to the leading cryptocurrency being too nascent to have established a significant track record. Regulatory compliance and crypto’s reputation for fraud and scandal were also on advisors’ minds.
“I would call them cautious…that’s their job,” Cohen said of skeptical financial advisors.
“An investment advisor is a fiduciary to his or her clients,” she added. “This is an asset class that has had 90% price volatility at some points in history, and their job is to actually build portfolios and do the risk analysis and due diligence. They’re doing that now.”
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The iShares Bitcoin Trust (IBIT) in 2024
“This is a moment, in terms of really presenting important data, risk analysis [and determining] the role that bitcoin can play in a portfolio, what kind of allocation is appropriate given an investor’s risk tolerance, their liquidity needs,” she added. “That’s what an advisor should do, so I think this journey where we are is exactly the right path and they are doing their job.”
Cohen said he sees bitcoin ETFs as a bridge between crypto and traditional finance – especially for investors who might be interested in making an allocation to bitcoin without having to manage their risk in two different ecosystems. Before ETFs, the existing on-ramps for crypto were insufficient for what some investors wanted to do, she said.
Coinbase Chief Financial Officer Alesia Haas said bitcoin is “on a slow adoption journey” – a theme that echoed throughout the conference sessions.
Blue Macellari, head of digital asset strategy at T. Rowe Price, pointed to the 1% allocation which some investors consider a safe and comfortable amount. She said she sees portfolio allocations in bitcoin as binary events, where they should be greater than 1% or zero, but also acknowledged the cautious approach to adoption.
“There is a psychological component where people need to test the waters and feel comfortable,” Macellari said. “It’s a paradigm shift… it takes time for people to ease their way.”
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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.
Bitcoin
‘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.
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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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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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.
Bitcoin
Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise
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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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