According to Samara Cohen, BlackRock is preparing to add crypto exchange-traded funds (ETF) to its model portfolios. In an interview with Bloomberg, Cohen, the Senior Manager, and BlackRock ETF CIO, touched on how the move could rile up institutional exposure to cryptocurrencies and renewed interest in tokens representing private assets.
Model portfolios are predefined investment landscapes built to deliver significant risk/return benefits. The largest brokerage firms, including Morgan Stanley, Wells Fargo, and UBS, provide a model business or “model portfolios” to assist clients in achieving all types of financial goals. It pools various securities to create an investment portfolio that reflects the investor’s level of risk and goal.
Spot Ether ETFs may have seen net outflows over the most recent week, but Cohen believes these instruments will become vital gateways for those who want to expose their portfolios to cryptos. This reflected the initial solid marketing of these ETFs. She noted that in addition to discharging the outflows, these encompassed a considerable reduction in assets from Grayscale Ethereum Trust upon its registration as a spot ETF.
Meanwhile, last week, Robert Mitchnick, head of digital assets at BlackRock, took a tempered outlook on the menu of crypto ETFs likely to hit the market anytime soon, with altcoins—read Solana—perhaps not in the picture yet.
With the overall model portfolio market projected to double in size from $4.2 trillion to over $10 trillion in just five years, it’s possible that including cryptocurrency ETFs will mark a significant change – one indicative of digital assets going mainstream with traditional finance and retirement planners as fiduciary advisors re-imagine the way they prepare clients for investment success pre- and post-retirement years via these cutting-edge offerings built on blockchain technology.
