The U.S. Securities and Exchange Commission officially approved 11 Bitcoin spot ETFs in January this year, and the trading volume exceeded US$4.6 billion on the first day of listing, attracting widespread market attention. In addition, with the influx of traditional financial investors, the single-day net inflow of Bitcoin spot ETFs also reached its peak on March 12, and the price of Bitcoin also exceeded the US$70,000 mark in one fell swoop.
Bitcoin risks make financial advisors cautious
Against this background, BlackRock ETF and Index Chief Investment Officer Samara Cohen stated at the Coinbase Cryptocurrency Summit held on the 13th that currently 80% of Bitcoin spot ETF purchases come from “independent investors”:
They usually make their own allocations through online brokerage accounts
Cohen pointed out that according to last quarter’s 13-F filings, hedge funds and brokerage firms were also buyers, but registered investment advisors (RIAs) were more cautious:
An investment advisor is a fiduciary for the client. This asset class has historically seen price swings of 90% at times, and their job is really to build the portfolio and do risk analysis and due diligence. They're doing it now.
But Cohen believes this is also a critical moment for Bitcoin spot ETFs:
This is a critical time for us to provide critical data and risk analysis to determine the role Bitcoin can play in investment portfolios and determine appropriate allocations based on investors’ risk tolerance and liquidity needs.
Most financial advisors are taking a wait-and-see approach
In addition, according to previous reports from Dongzhong, although the Bitcoin spot ETF has attracted nearly $15.11 billion in inflows since its listing, CNBC reported that although some advisors are considering recommending it in the future, the acceptance of cryptocurrency products among financial advisors still lower
Many financial advisors are taking a wait-and-see approach to Bitcoin spot ETFs, with the main factors affecting their adoption being "market time" and "regulatory compliance." In addition, some large financial institutions such as Vanguard (the world’s second-largest asset management giant) have not expressed trust in Bitcoin ETFs, which has also affected the adoption rate among advisors.
Bitcoin is in the process of slow adoption
While many investment advisors are wary of Bitcoin spot ETFs, most financial advisors are also staying on the sidelines. However, Coinbase Chief Financial Officer Alesia Haas said: " Bitcoin is in the process of slow adoption ," and this view was also mentioned many times during this conference.
Blue Macellari, head of digital asset strategy at T. Rowe Price, pointed out that some investors believe that the 1% allocation is a safe and comfortable ratio, but he also admitted that the adopted attitude needs to be cautious:
Bitcoin allocation in a portfolio is a binary event, either over 1% or 0%
In addition, Macellari also said that Bitcoin is a paradigm shift that requires investors to gradually adapt:
There is a psychological component to this and people need to test the waters and get used to it.
