Fun

Crypto ETFs to hit ‘model portfolios’ toward year end — BlackRock

News Feed - 2024-07-30 12:07:30

Martin Young5 hours agoCrypto ETFs to hit ‘model portfolios’ toward year end — BlackRock“Investors really want to get their ETH exposure,” said BlackRock’s ETF investment chief Samara Cohen.1790 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksDigital currency-backed exchange-traded funds will likely make their way into “model portfolios” toward the end of 2024, according to BlackRock’s chief investment officer for exchange-traded funds (ETFs). 


In a Bloomberg interview on July 29, BlackRock’s investment chief for ETF and Index Investments, Samara Cohen, was asked about where big wirehouses such as Morgan Stanley, Wells Fargo and UBS were with onboarding and promoting crypto ETFs.


Cohen noted that the wirehouses are now conducting risk analytics and due diligence and looking at the roles of Bitcoin (BTC) and Ether (ETH) in their portfolios.“What will happen toward the end of this year and into next year is we will see allocations into model portfolios which will give us much more of a steer into how investors are using them.”


Model portfolios offered by large, full-service brokerage firms generally take a diversified approach to investing, targeting a balance of risk and return based on a transparent strategy.


They can be considered as pre-designed investment strategies that act like ready-made templates or “recipes” for investing.


BlackRock expects model portfolio management to grow from $4.2 trillion currently to $10 trillion in the next five years.


Earlier in July, Salim Ramji, global head of iShares and index investments at the asset manager, said “It’s going to be massive,” before adding, “It’s the way in which more and more fiduciary advisers are doing business, and, as a result, that’s the way in which we’re doing business with them.”


Cohen added that Bitcoin and Ether are two very different asset classes with different use cases, but they are useful as “portfolio diversifiers.”Samara Cohen discusses ETH ETFs. Source: Bloomberg


Commenting on the net outflows from spot Ether ETFs since they launched, Cohen said she wasn’t concerned because it was a strong launch, and they provide an “access point” for investors who want ETH in their portfolios.


She said there have been a lot of outflows from higher priced funds, in likely reference to the Grayscale Ethereum Trust, but also from “proxy vehicles” because:“Investors really want to get their ETH exposure, especially if they’re going to use it in the context of an overall portfolio in an ecosystem they have confidence in.”


Related:BlackRock foresees "very little interest" in crypto ETFs beyond Bitcoin, Ethereum


The Grayscale Ethereum Trust has shed $1.7 billion since its spot ETF conversion, which includes the latest $210 million outflow on July 29. However, around 10% of that has gone into its zero-fee Ethereum Mini Trust.


Ether spot ETFs have now registered four consecutive days of outflows and only one inflow day since the launch on July 23, according to preliminary data from Farside Investors.


Cohen also confirmed there is unlikely to be a spot ETF for altcoins such as Solana’s (SOL) in the near term. Robert Mitchnick, BlackRock’s head of digital assets, echoed the sentiment, stating at the Bitcoin 2024 conference, “I don’t think we’re gonna see a long list of crypto ETFs,”


Magazine: Trump’s Bitcoin push, spot Ether ETF debut, and more: Hodlers Digest, July 21-27# Bitcoin# Ethereum# Ethereum ETF# Bitcoin ETF# BlackRockAdd reaction

News Feed

Antonio Juliano steps down as CEO of dYdX
Ana Paula Pereira8 hours agoAntonio Juliano steps down as CEO of dYdXThe decentralized exchange is now led by Ivo Crnkovic-Rubsamen, a former trader and dYdX chief strategy officer.1797 Total views10 Total sharesListen t
Which Altcoins to Buy as Austin University Announces $5M Bitcoin Fund
The University of Austin is launching a $5M Bitcoin fund for its $200M endowment. The foundation’s chief investment officer, Chun Lai, said that they’re keen to capitalize o
Kevin O’Leary Says He Won’t Sell Any Crypto Despite Downturn – ‘You Just Have to Stomach It’
Kevin O"Leary Says He Won"t Sell Any Crypto Despite Downturn – "You Just Have to Stomach It" Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says he is not selling any o
Government Agencies Need Crypto Wallets and Access to Exchanges, Russian Prosecutors Say
Government Agencies Need Crypto Wallets and Access to Exchanges, Russian Prosecutors Say Russian authorities are finding it hard to cash out digital assets they have gotten hold of
Bitcoin Price Action: Why The Next 30 Days Could Be A Game-Changer For The Market
Este artículo también está disponible en español. Crypto analyst CryptoCon has provided valuable insights into the Bitcoin price actionin this cycle. Based on his analysi
Tom Blackstone3 hours agoCardano stablecoin project gambled away investors’ money before rug: ReportArdana claimed to be creating a stablecoin platform on Cardano, but new evidence suggests it may have lost investors
Report: South African Firm Launches ‘Crypto Water Token’ — Receives Investment of $150M
Report: South African Firm Launches "Crypto Water Token" — Receives Investment of $150M The South African company behind the so-called “crypto water token” is repor
2.23 Million Chainlink Moved To Exchanges In Two Weeks – Selling Pressure Incoming?
Este artículo también está disponible en español. Chainlink (LINK) has faced massive volatility and uncertainty, with price action resembling a rollercoaster ride over th
Bitcoin Price Crash To $100,00 Loading: Next Targets Revealed As Bears Take Over
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Russia’s Digital Ruble Integrated Into Banking App
Russia’s Digital Ruble Integrated Into Banking App VTB has become the first Russian bank to add the digital ruble to its mobile application. The integration is currently being te
JPMorgan Chase launches AI tool for research analyst tasks
Arijit Sarkar1 hour agoJPMorgan Chase launches AI tool for research analyst tasksJPMorgan Chase has introduced LLM Suite, an AI-driven tool similar to ChatGPT, to boost productivity in its asset and wealth management div
How Binance NFT Is Building the No․1 Gaming Metaverse
How Binance NFT Is Building the No․1 Gaming Metaverse sponsored Video games, the Metaverse and NFTs. Binance NFT has become the largest centralized gaming NFT marketplace. See wha