BlackRock, the world’s largest asset manager, predicts significant growth for digital currency-backed exchange-traded funds (ETFs), with their inclusion in model portfolios likely by late 2024. This move is expected as part of a larger trend where model portfolio management could surge from $4.5 trillion to $10 trillion over the next five years. The adoption of cryptocurrencies like Bitcoin and Ether, recognized for their distinct use cases and benefits as portfolio diversifiers, is gaining momentum among major brokerage firms.

During a recent Bloomberg interview, BlackRock’s investment chief for ETFs, Samara Cohen, highlighted the ongoing risk assessments and due diligence by major wirehouses like Morgan Stanley and Wells Fargo. These efforts are paving the way for broader acceptance and integration of crypto ETFs into diverse investment strategies, offering investors a more robust framework for exposure to digital assets.

Despite recent outflows from specific Ether spot ETFs, the sentiment remains positive with a strong focus on long-term growth and investor confidence in the digital asset space. BlackRock’s strategic move could herald a new era of investment, merging traditional financial avenues with the burgeoning field of cryptocurrencies.