BlackRock Chief Discusses U.S. Bitcoin ETFs
On 11 January 2024, Samar Cohen, Chief Investment Officer of ETFs and Index Investments at BlackRock, spoke on CNBC about the U.S. SEC’s approval of ten new spot Bitcoin ETFs on 10 January 2024.
Initial Trading and Market Response
Cohen noted orderly trading on the launch day of BlackRock’s ETF, indicating strong investor interest.
ETF Performance and Tracking
Cohen emphasized the importance of market quality, liquidity, spreads, and accurate tracking in delivering what investors seek, which is exposure to spot Bitcoin. She expressed optimism that BlackRock’s ETF would meet these expectations.
Market Liquidity and Spreads
Cohen observed the tight spreads in the market, indicating good liquidity, and a positive sign for the ETF’s health and investor interest.
Investor Inflows and Usage
Cohen mentioned that it’s still early to gauge inflows accurately, as they can only track secondary volumes at this stage, and anticipates investor usage of Bitcoin ETFs will become clearer over time.
Institutional Adoption and Education
Cohen believes that the launch of Bitcoin ETFs will be an important journey of education for all types of investors, including institutions. She stressed that investor demand for Bitcoin access through ETFs was a significant driver behind the SEC’s approval.
Marketing and Risk Communication
BlackRock is focusing on educating partners about the ETF wrapper’s characteristics and convenience and emphasized the importance of investors considering the underlying asset’s volatility and risk characteristics, just as they would with any ETF.
Pricing and Competition Among ETFs
Cohen acknowledged that pricing is a crucial factor, with many competitors in the market and believes that performance, in terms of tracking accuracy and market quality, will be key differentiators for investors.
Hot Take
Samar Cohen’s insights shed light on the successful trading launch of BlackRock’s new spot Bitcoin ETFs and the future prospects of Bitcoin ETFs as a vehicle for investors seeking exposure to the cryptocurrency. BlackRock seems poised to meet investor expectations and compete effectively in the growing market for Bitcoin ETFs
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