Today, the head of digital assets at BlackRock Robert Mitchnick of Bloomberg ETF IQ talked about what really drove the surge in Bitcoin ETFs.
“It’s a lot of things that come together. The door is the demand for retail and investors…” “Now, lately, we’ve seen more wealth advisor adoption, more institutional adoption. This is the first time they’ve invested anything in the crypto space. Then, on the other hand, you have a lot of people investing in bitcoin for a long time and they’ve taken advantage of the ETP wrapper.”
When it comes to agency adoption, Mickey said we were still early. ETF approval usually takes years, but some companies are quickly tracking the process.
“We’ve seen a lot of fast tracking for companies, and we’re talking about fast tracking,” Mickey said. “What we’re talking about is, you know, not months. Slowly but surely, you think you think it’s an acceleration, especially with more famous companies in recent months lowering their barriers, approving their consultants to use these barriers.”
Bitcoin’s volatility has declined recently, making institutions seeking diversification even more attractive. However, it remains volatile, but its risk and return profile is different from traditional assets.
“It is undoubtedly a relatively novel technology,” Mickey commented. “Even if the volatility has fallen, it still volatility, but at the same time, its risk and return drivers are significantly different from most other assets in a traditional portfolio, which is important. So when institutions are considering this, they are very relevant, whether constructed in certain periods or in certain periods, because their constructs are very constructed, because their constructs are constructed.
Currently, there are about 12 Bitcoin ETFs competing in the market and demand is still strong.
“Well, a lot of people are very successful, too,” Mickey said. “Obviously, this is the leader in the category. But there is a requirement like this, you know, it’s exciting, and there’s a lot of products in the space, which is a good thing.”
