Samara Cohen, the CIO of ETF and index investments at BlackRock, has noted that registered investment advisors have been hesitant to embrace Bitcoin exchange-traded funds (ETFs). According to a report by CNBC, Cohen stated that approximately 80% of Bitcoin ETF investments come from self-directed investors, with hedge funds and brokerages also showing interest in accumulating shares of these funds.

However, Cohen pointed out that there is still a group of investors who remain cautious about this investment vehicle. She described them as “wary” and highlighted the fiduciary responsibility of investment advisors to their clients. Given the historical price volatility of Bitcoin, Cohen emphasized the importance of conducting thorough risk analysis and due diligence when constructing portfolios.

Cohen believes that RIAs are still in the early stages of adopting Bitcoin ETFs and emphasized the need for data, risk analytics, and portfolio allocation considerations. She expressed confidence in the journey that advisors are undertaking to understand the role Bitcoin can play in a portfolio and determine appropriate allocations based on investor risk tolerance and liquidity needs.

In a separate prediction, Mark Yusko of Morgan Creek suggested that investment advisors could potentially allocate around 1% of the funds managed on behalf of the baby boomer generation to Bitcoin ETFs in the coming months. This shift could bring a significant amount of capital into the space, surpassing previous levels of Bitcoin investment over the past 15 years.

As the industry continues to evolve, it is important for investors to stay informed and conduct their own research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl provides information and insights but does not offer investment advice, and individuals are encouraged to exercise caution and diligence in their financial decisions.