BlackRock’s Samara Cohen has mentioned that registered investment advisors have been hesitant to embrace spot Bitcoin (BTC) exchange-traded funds (ETFs). Cohen, who holds the position of BlackRock’s CIO of ETF and index investments, stated that approximately 80% of Bitcoin ETF investments are made by self-directed investors, as per CNBC reports. She also highlighted that hedge funds and brokerages have been building up their holdings in Bitcoin ETF shares.

Despite this, Cohen pointed out that there is one group of investors who have yet to fully commit to this investment vehicle. She described them as cautious, noting that their role as fiduciaries to their clients requires them to carefully assess the risks involved. With Bitcoin’s history of 90% price volatility at times, investment advisors are focused on portfolio construction, risk analysis, and due diligence.

Cohen believes that registered investment advisors (RIAs) are still in the early stages of incorporating Bitcoin ETFs into their strategies. She emphasized the importance of gathering data, conducting risk analytics, and determining the role of Bitcoin in a portfolio based on an investor’s risk tolerance and liquidity needs. This process aligns with the responsibilities of an advisor, and Cohen sees it as a necessary journey.

In a separate prediction in April, Mark Yusko of Morgan Creek suggested that investment advisors could potentially allocate around 1% of the funds managed on behalf of the baby boomer generation to spot Bitcoin ETFs in the coming months. With approximately $30 trillion under management by financial advisors for this demographic, Yusko estimated that $300 billion could flow into the space, surpassing the total amount converted to Bitcoin over the past 15 years.

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