Samara Cohen, BlackRock’s CIO of ETF and index investments, recently stated that registered investment advisors (RIAs) have been hesitant to adopt Bitcoin exchange-traded funds (ETFs).
Self-Directed Investors Drive ETF Adoption
Cohen estimates that self-directed investors account for approximately 80% of Bitcoin ETF investments. Hedge funds and brokerages have also accumulated shares, but RIAs remain on the sidelines.
RIAs Exercise Caution
Cohen believes RIAs are taking a cautious approach due to their fiduciary responsibility to clients. Bitcoin’s historical price volatility poses a risk that RIAs must carefully consider.
RIAs in Early Stages of Adoption
Cohen sees RIAs as being in the early stages of evaluating Bitcoin ETFs. They are currently gathering data and conducting risk analysis to determine the appropriate role for Bitcoin in portfolios.
Potential Boom from Baby Boomers
Mark Yusko of Morgan Creek predicts that investment advisors could allocate up to 1% of baby boomer funds to Bitcoin ETFs in the coming months. This could potentially bring billions of dollars into the space.
