BlackRock's ETF CIO: 'Financial advisors are hesitant about buying a spot bitcoin ETF'

BlackRock's ETF CIO: 'Financial advisors are hesitant about buying a spot bitcoin ETF'

In many ways, BlackRock is a bellwether for the financial industry. As the world's largest asset manager, the company's decisions can have a ripple effect throughout the financial world. According to a recent report from BeInCrypto, BlackRock’s ETF and index CIO Samara Cohen said, “80% of buyers of spot bitcoin ETFs are individual investors, who are often using online brokerage accounts. Hedge funds, family offices and other institutional investors are also actively buying bitcoin ETFs. The holdouts are RIAs and other qualified financial advisors. That’s because bitcoin is so volatile. Right now, it’s really about data, risk analysis to see how much of it should be in a portfolio, given an investor’s risk tolerance and liquidity needs. And that’s an appropriate place for advisors to be right now. They are doing their jobs.” It's clear that there is a growing interest in spot bitcoin ETFs among institutional investors. However, financial advisors are still hesitant to buy these products due to the volatility of bitcoin. This is a valid concern, as bitcoin's price can fluctuate wildly in a short period of time. As a result, financial advisors are taking a wait-and-see approach to spot bitcoin ETFs. They are waiting for more data and analysis before they recommend these products to their clients.