According to BlackRock’s Samara Cohen, institutional investors are focusing almost exclusively on Bitcoin, especially amid current economic uncertainty. Bitcoin ETFs have attracted significant investments, while altcoins, including Ethereum, are falling behind. Cohen’s insights reflect a growing consensus among hedge funds that Bitcoin’s dominance is set to continue, as traditional investment strategies evolve in seeking diversification and returns.
Big investors are increasingly focused on Bitcoin, according to Samara Cohen, BlackRock’s Chief Investment Officer for ETF and Index Investments. Speaking on the Blockworks Empire podcast, she noted that institutional interest is particularly pronounced during uncertain times, which suggests that Bitcoin is currently the leading asset in the crypto landscape. Cohen emphasised that as global economic tensions rise, the narrative around Bitcoin as an uncorrelated asset has gained traction among major players in finance.
Bitcoin’s recent performance has added to its appeal. Over the past week, it rose nearly 7% to around $94,800, making it a standout performer compared to equities, particularly as the dollar weakens. Additionally, Bitcoin exchange-traded funds (ETFs) have seen significant inflows, pulling in $3.3 billion just this past week. With 1.1 million Bitcoins valued at approximately $106 billion now held in ETFs, the market seems to be consolidating around Bitcoin specifically.
Cohen, however, didn’t hold back on the outlook for altcoins. She expressed skepticism about the investment potential across a wide range of alternative cryptocurrencies. “It is very unclear what the investment thesis is for a very broad array of altcoins,” Cohen remarked, highlighting that even Ethereum, which recently launched a BlackRock ETF, falls significantly behind Bitcoin in terms of market interest and performance.
Current figures show that Ethereum ETFs manage about $8.5 billion, dwarfed by Bitcoin’s substantial total. Additionally, Ethereum’s price has struggled to regain past highs, lingering below its all-time high of $4,848 from November 2021, as its total market valuation hovers around $219 billion. For those betting on an upcoming altseason, patience may be necessary as the crypto market continues to favour Bitcoin.
According to a report from Crypto Insights Group, about 70% of 50 hedge funds managing over $5 billion believe Bitcoin’s dominance will only continue to expand. Cohen’s stance reflects a broader consensus emerging among institutional investors. Jay Jacobs, BlackRock’s US head of equity ETFs, also noted last week that Bitcoin’s fundamental characteristics help it behave differently compared to traditional assets, which encourages a shift in investor strategy towards Bitcoin and private markets.
The traditional investment mix for these institutions, which typically consists of about 60% in equities and 40% in bonds, is undergoing a transformation as they seek new sources of return and diversification. Cohen pointed out that this shift is significantly guiding investors towards Bitcoin at this moment.
Pedro Solimano is a markets correspondent based in Buenos Aires. If you have tips or info to share, please email him at [email protected].
