BlackRock Senior Executive Makes Statement on Bitcoin and Cryptocurrencies.
Samara Cohen, BlackRock's Chief
Investment Officer for Exchange
Traded Funds (ETFs) and Index
Investments, revealed that 75% of
buyers of the company's Bitcoin ETF
are cryptocurrency enthusiasts who
are unfamiliar with traditional Wall
Street investments.
BlackRock Says Majority of Bitcoin Spot ETF Buyers Are From Cryptocurrency Community, Not Traditional Finance
Speaking at the Permissionless Conference in Utah, Cohen explained that the ETF structure provides investors with a more accessible way to invest in BTC. "The ETF was created as a vehicle," he told CNBC. BlackRock's Bitcoin ETF has seen significant interest since its launch, with the combined market cap of eleven spot BTC ETFs exceeding $63 billion and inflows of nearly $20 billion. In the past five trading days alone, spot Bitcoin ETFs have seen net inflows of over $2.1 billion, with BlackRock's share accounting for half of those sales.
The increase in trading volume is consistent with Bitcoin trading above $68,300, its highest level since July. Bitcoin ended the third quarter up nearly 140% year-over-year, significantly outperforming the S&P 500. Shares of major crypto exchange Coinbase also rose 24% this week, its best performance since February.
Cohen noted that a key part of BlackRock's strategy is to educate crypto investors about the benefits of ETFs and ETPs. According to recent 13F filings, 80% of buyers of these new U.S. spot bitcoin products are direct investors. Of this group, 75% have never owned iShare, BlackRock's well-known ETF brand.
"We initially thought we needed to educate ETF investors specifically about crypto and Bitcoin," Cohen said, "but instead, we found ourselves educating crypto investors about the benefits of the ETP suite."
