BlackRock: Bitcoin ETFs Bridge Gap to Traditional Finance

• 80% of Bitcoin ETF purchases come from self-directed investors.
• Advisors wary due to Bitcoin’s volatility and regulatory concerns.
• Bitcoin ETFs viewed as a bridge between crypto and traditional finance.

Despite slower-than-anticipated adoption, Bitcoin ETFs are slowly attracting investors according to BlackRock’s chief investment officer, Samara Cohen. Whereas initially popular among self-directed investors, institutional interest is seeing a rise, lately.

At present, approximately 80% of Bitcoin ETF purchases come from “self-directed investors,” mostly through online brokerage accounts. The iShares Bitcoin Trust (IBIT) is among the ETFs launched this year. Although hedge funds and brokerages have also shown interest, as evidenced by last quarter’s 13-F filings, the numbers for registered investment advisors remain significantly lower, Cohen noted at the recent Crypto Summit.

A CNBC poll revealed that advisors’ hesitancy is rooted in Bitcoin’s notorious price volatility, its nascent nature, and the lack of a significant track record. Concerns about regulatory compliance and the cryptocurrency’s association with fraud and scandal also contribute…

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