BlackRock’s ETF and Index Investment Manager Samara Cohen stated on the 13th that currently 80% of Bitcoin spot purchases come from “retail investors,” while registered investment advisers appear to be more cautious. However, Cohen believes that this is the responsibility that investment advisers should fulfill, and points out that this is also a critical moment for Bitcoin spot ETFs.
Bitcoin’s risk makes financial advisers cautious
Most financial advisers remain cautious
Bitcoin is in a slow adoption process
The U.S. Securities and Exchange Commission officially approved 11 Bitcoin spot ETFs in January of this year, and on the first day of trading, the trading volume exceeded $4.6 billion, attracting widespread market attention. In addition, with a large influx of traditional financial investors, the daily net inflows of Bitcoin spot ETFs also peaked on March 12, pushing the price of Bitcoin above $70,000.
In this context, BlackRock’s ETF and Index Investment Manager Samara Cohen, at the Coinbase Cryptocurrency Summit on the 13th, stated that currently 80% of Bitcoin spot ETF purchases come from “retail investors”:
According to the 13-F filings from the previous quarter, hedge funds and broker-dealers are also buyers, but registered investment advisers (RIA) appear more cautious:
However, Cohen believes this is also a critical moment for Bitcoin spot ETFs:
Investment Advisers are authorized and regulated by the Securities and Exchange Commission (SEC) or state governments (as applicable). The SEC requires “investment advisers” to register and become “registered investment advisers (RIA).” They all have a Fiduciary Duty, prioritizing the interests of clients. Financial advisers, on the other hand, are not regulated, so anyone can publicly call themselves a financial adviser.
In addition, according to a previous report from Dynamic Zone, although Bitcoin spot ETFs have attracted nearly $15.11 billion in inflows since listing, CNBC reported that while some advisers are considering recommending it in the future, the acceptance of cryptocurrency products among financial advisers remains relatively low.
Many financial advisers remain cautious about Bitcoin spot ETFs, with the main factors affecting their adoption being “market timing” and “regulatory compliance.” In addition, some large financial institutions like Vanguard (the world’s second-largest asset management giant) have not expressed trust in Bitcoin ETFs, which also affects the adoption rate among advisers.
While many investment advisers are cautious about Bitcoin spot ETFs, most financial advisers also remain cautious. However, Coinbase CFO Alesia Haas stated, “Bitcoin is in a slow adoption process,” a viewpoint that was also mentioned multiple times at the conference.
Blue Macellari, Director of Digital Asset Strategy at T. Rowe Price, pointed out that some investors believe that a 1% allocation is a safe and comfortable ratio, but he also acknowledged that the attitude towards adoption needs to be cautious:
Additionally, Macellari stated that Bitcoin is a paradigm shift that requires investors to gradually adapt:
A paradigm shift is used to describe a fundamental change in basic assumptions in the scientific realm. This change has also been applied to various other disciplines’ significant transformations.