BlackRock ETF Head Discusses Bitcoin Demand and New Options; Bitcoin Returns Surpass Expectations

BlackRock ETF head Samara Cohen has revealed that the majority of demand for Bitcoin is coming through investment tools like ETFs, rather than direct purchases from crypto exchanges. In an interview with CNBC, Cohen shared that 80% of Bitcoin ETF buyers are direct investors, with 75% being first-time buyers of BlackRock’s iShares products.

The total market cap of all 11 spot Bitcoin ETFs has surpassed $63 billion, with nearly $20 billion in inflows. In the last five trading days alone, spot Bitcoin ETFs saw over $2.1 billion in net inflows, with BlackRock accounting for half of that amount.

Bitcoin recently hit its highest price since July, trading above $68,300 and ending Q3 with a 140% year-over-year increase. Cohen emphasized that their initial goal was to educate ETF investors about crypto, but they ended up teaching crypto investors about the benefits of ETFs.

In a significant development for institutional investors, the U.S. Securities and Exchange Commission (SEC) granted accelerated approval for 11 exchange-traded funds to list and trade options tied to spot Bitcoin prices on the New York Stock Exchange (NYSE). This move provides investors with a regulated way to speculate or hedge risks related to Bitcoin’s price movements.

Bloomberg analyst Eric Balchunas commented on the approval, noting that while it wasn’t a major surprise given recent approvals for Nasdaq, it is still positive news for the crypto market. However, the actual listing of these options will require further approval from the Commodity Futures Trading Commission (CFTC).

As Bitcoin closed Q3 with a modest gain and market sentiment turned bullish, the Federal Reserve’s interest rate cut of 50 basis points has boosted market activity. Bitcoin’s price surged past $62,000, indicating a strong bullish response, with altcoins also outperforming U.S. equities.

The outperformance of the crypto market suggests that liquidity injections could follow, with Bitcoin expected to benefit from further economic stimulus. With historical data showing strong returns in Q4, the upward momentum in the crypto market is likely to continue in the near term.