ETFs
“I would call them suspicious…” — TradingView News
A Black Rock. The executive suggested that financial advisors proceed with caution Bitcoin exchange traded funds after the Securities and Exchange Commission (SEC) approved them in January.
What happened: Samara CohenBlackRock’s chief investment officer for ETFs and index investing, said financial advisors are gradually adopting Bitcoin ETFs, CNBC reported.
Despite slow adoption, about 80% of Bitcoin ETF purchases have been made by do-it-yourself investors, Cohen said. She added that hedge funds and brokerages have also shown interest, but registered investment advisers have been more cautious.
“I would call them suspicious…that’s their job,” Cohen said of skeptical financial advisors.
Asked about advisor skepticism, Cohen pointed to the asset class’s notorious price volatility, relatively short history, and concerns about regulatory compliance and fraudulent activity.
“An investment advisor is a fiduciary to their clients,” Cohen added. “This is an asset class whose prices have seen 90% volatility at times in history, and their job is really to build portfolios and do the risk analysis and diligence reasonable. They’re doing it right now.”
According to Cohen, Bitcoin ETFs could serve as a bridge between traditional finance and crypto, giving investors a simpler way to allocate funds to Bitcoin.
She defended the advisors’ cautious approach, saying their fiduciary role requires them to conduct thorough risk analysis and due diligence.
“There is a psychological component where people have to test the waters and feel comfortable,” Macellari Blueresponsible for digital asset strategy for Price T. Rowe, said. “It’s a paradigm shift… it takes time for people to adjust to it.”
https://www.benzinga.com/quote/ibit Investors studying Bitcoin ETFs can explore options such as BlackRock iShares Bitcoin Trust I BITE, Grayscale Bitcoin Trust 
Why is this important: Financial advisors’ cautious stance on Bitcoin ETFs comes amid mixed feelings in the cryptocurrency market.
Recently, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” responded to concerns about the high price of Bitcoin, arguing that the cryptocurrency is not as expensive as it will be in the future. Kiyosaki’s comments reflect a broader debate about Bitcoin’s valuation and its growth potential.
Additionally, a recent report from Bernstein predicts that Bitcoin could reach $1 million by 2033, driven by growing demand from spot ETFs and limited supply of the cryptocurrency. The report also revised its Bitcoin price estimate for 2025 upwards to $200,000, indicating strong long-term bullish sentiment.
Investors interested in Bitcoin ETFs can check out BlackRock iShares Bitcoin Trust 
Price action: Bitcoin price stands at $65,915, with a decline of 0.56% in the last 24 hours. Since the start of the year, Bitcoin has seen a significant increase of 49.36%, while over the past year it has surged 148.90%, according to data from Benzinga Pro.
Read next: Bitcoin, Ethereum and Dogecoin fall further: “Chop for the rest of the summer… Beggars can’t be choosers,” says trader
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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