GBTC - Financial Advisors Slow In Adopting Bitcoin ETFs Despite Self-Directed Investor Surge BlackRock Executive Says: 'I Would Call Them Wary…' | Benzinga
A BlackRock Inc. executive has suggested that financial advisors are proceeding cautiously with Bitcoin (CRYPTO: BTC) exchange-traded funds after the Securities and Exchange Commission (SEC) approved them in January.
What Happened: Samara Cohen, BlackRock’s chief investment officer of ETF and index investments, stated that financial advisors are gradually embracing Bitcoin ETFs, reported CNBC.
Despite the slow adoption, approximately 80% of Bitcoin ETF purchases have been made by self-directed investors, Cohen said. She added that hedge funds and brokerages have also shown interest, but registered investment advisors have been more cautious.
"I would call them wary … that's their job," Cohen said of the skeptical financial advisors.
When questioned about the advisors’ skepticism, Cohen pointed out the asset class’s notorious price volatility, its relatively short track record, and concerns about regulatory compliance and fraudulent activities.
"An investment advisor is a fiduciary to their clients," Cohen added. "This is an asset class that has had 90% price volatility at times in history, and their job is really to construct portfolios and do the risk analysis and due ...