BlackRock ETF Director Samara Cohen Discusses 2025 Encryption Asset Layout

Samara Cohen, head of BlackRock's ETF and Index Investment Division, recently gave an interview, sharing her unique insights on digital asset ETFs, the modernization of the market, and the integration of blockchain technology with traditional finance.

Samara believes that the financial markets are undergoing a critical transformation period. She describes herself as a "market modernization advocate," dedicated to enhancing market resilience, increasing transparency, and expanding investor participation. Samara points out that ETFs are in themselves a disruptive technology, sharing a common goal with blockchain technology: to drive market modernization and achieve innovation and transformation in financial markets.

We are currently in the stage of integration between blockchain assets and traditional financial markets. The launch of the Bitcoin ETP in the United States marks an important watershed moment, bridging the gap between the encryption world and the traditional financial world. This integration allows traditional investors to access Bitcoin through familiar tools, while digital native investors also find that the ETP meets their needs.

Samara metaphorically compares the current development of encryption assets to the transition from dial-up internet to broadband internet. She poses a key question: is the vision of complete decentralization really the best fit for the current market and investors? She suggests using encryption technology to improve trust mechanisms rather than completely replacing intermediaries.

In the development of the options market, BlackRock's iShares Bitcoin ETF and Ethereum ETP dominate in trading volume. The options market has brought new trading mechanisms to cryptocurrency ETFs, achieving standardization of funding methods, measurability of volatility trends, and real-time monitoring of trading conditions.

Samara emphasized that for institutions like BlackRock, which cater to long-term investors, communicating fundamental factors to investors is more important than focusing on price trends. She pointed out a common misconception in the cryptocurrency world: many people believe that the success of an ETF is directly related to the rise in the price of the underlying assets. However, BlackRock measures the success of an ETP by whether the product meets investor needs, provides an effective market access mechanism, has good liquidity, and can achieve effective price discovery.

Regarding the future development of ETFs, BlackRock hopes to see continued research on Bitcoin in the context of portfolio construction, with the discussion shifting from "whether to invest in Bitcoin" to "how to appropriately utilize Bitcoin in a portfolio." At the same time, the launch of Bitcoin ETP options is also an important development.

Looking ahead to 2025, BlackRock is focusing on three core areas: the establishment of fundamental definitions, the clear delineation of jurisdictions, and the establishment of collaboration mechanisms between the public and private sectors. Samara believes that the industry is entering a possible "golden age," mainly due to lower costs of block space, a more convenient development environment, and a clearer regulatory outlook.