In a revealing dialogue hosted by Bankless, Samara Cohen — the executive overseeing ETF and index investing at global financial powerhouse BlackRock — shared her forward-looking insights on digital asset ETFs, market modernization, and the convergence of blockchain technology with traditional finance. With over $6.6 trillion in assets under management, BlackRock’s perspective carries significant weight. This article distills her key points, offering clarity on the evolving crypto landscape and what lies ahead in 2025.
The Vision of Market Modernization
Before leading one of the world’s largest ETF divisions, Samara Cohen specialized in fixed income and derivatives at major investment banks. She describes herself as a "market modernization advocate", focused on strengthening market resilience, enhancing transparency, and broadening investor access.
At BlackRock, she works closely with Robbie Mitnik, head of digital assets, to explore how emerging technologies can reshape finance. According to Samara, ETFs are themselves disruptive innovations — not unlike blockchain — aimed at making markets more efficient, inclusive, and adaptable.
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Bridging Blockchain and Traditional Finance
We are now witnessing a pivotal phase: the integration of blockchain-based assets into traditional financial systems (TradFi). The launch of U.S.-listed Bitcoin ETPs (Exchange-Traded Products) marked a turning point — not just because they brought crypto to mainstream investors, but because they created a two-way bridge.
- Traditional investors gain exposure to Bitcoin through regulated, familiar vehicles.
- Crypto-native investors appreciate the liquidity, security, and institutional-grade infrastructure these products offer.
Despite covering only a small fraction of the crypto ecosystem today, these ETPs rely heavily on existing financial rails. Samara emphasizes that the goal isn’t to dismantle legacy systems but to build interoperable bridges that combine the best of both worlds: decentralization’s transparency with TradFi’s scale and compliance.
From “Dial-Up” to “Broadband”: The Evolution of Crypto Markets
Samara draws an analogy between early internet connectivity and today’s crypto market structure:
- Current State ("Dial-Up"): Bitcoin and Ethereum ETFs are “analog versions” of digital assets — essentially fitting decentralized assets into centralized frameworks.
- Future Vision ("Broadband"): Financial institutions like BlackRock or Nasdaq could run core operations directly on blockchains, possibly using dedicated institutional chains.
But she poses a critical question: Is full decentralization truly optimal for all market participants?
While acknowledging blockchain’s strengths — auditability, transparency, immutability — Samara argues that intermediaries serve a vital role by enabling specialization. Instead of eliminating them, the focus should be on using technology to enhance trust in intermediaries, not replace them entirely.
The Rise of Crypto Options Markets
BlackRock’s iShares Bitcoin and Ethereum ETPs dominate in options trading volume. Through partnerships with exchanges like Nasdaq, the firm helped establish a robust options ecosystem — including launching Bitcoin ETF options a day ahead of competitors.
Key characteristics driving interest in crypto options include:
- High price volatility
- Volatility-of-volatility (vol-of-vol)
- Positive skew — prices often rise amid increasing volatility
By bringing structured volatility tools to regulated exchanges, ETFs enable:
- Standardized risk exposure
- Measurable volatility trends
- Real-time trade monitoring
Historically, many institutional investors entered equity markets via ETF options. Similarly, crypto options now offer sophisticated risk management tools, allowing investors to hedge positions or express nuanced market views.
This evolution enhances market quality by improving:
- Trading standardization
- Price discovery
- Liquidity depth
- Risk mitigation capabilities
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FAQ: Addressing Key Investor Questions
Q: Is the success of a crypto ETF tied to its underlying asset’s price?
A: No. While price movements attract attention, BlackRock measures ETF success by liquidity, tracking accuracy, investor access, and ecosystem maturity — not short-term price trends.
Q: Why has Bitcoin ETF inflow outpaced Ethereum’s?
A: Bitcoin benefits from a clearer investment narrative — “digital gold,” scarcity (21 million cap), and portfolio diversification during macro uncertainty. Ethereum’s value proposition is more complex and overlaps with tech equities for many investors.
Q: Does BlackRock plan to launch more crypto ETFs beyond Bitcoin and Ethereum?
A: Currently, the focus remains on Bitcoin and Ethereum ETPs, tokenized assets (like Treasury funds), and stablecoins. Any new product would require strong investment rationale, client demand, and regulatory clarity.
Q: How does volatility affect Bitcoin’s role in portfolios?
A: Paradoxically, high volatility contributes to Bitcoin’s value as a diversifier. Without it, the asset might not offer meaningful non-correlation benefits during market stress.
Q: What role does education play in crypto adoption?
A: Education is critical. At BlackRock, they believe “education is the best marketing” — teaching investors about risk management, portfolio integration, and long-term strategy matters far more than price rallies.
Redefining ETF Success Metrics
Samara highlights a common misconception: equating ETF success with asset price appreciation. In reality, ETF performance is judged by:
- Tracking Precision: How closely the fund mirrors its benchmark.
- Market Quality: Liquidity depth, AP (Authorized Participant) activity, bid-ask spreads.
- Investor Utility: Does it solve real problems? (e.g., avoiding futures roll costs or custody risks.)
Despite lower inflows compared to Bitcoin ETFs, Ethereum ETPs rank among the top 20 new U.S. ETF launches in 2025, signaling solid adoption. Their success reflects strong market structure — even if narratives lag.
Trends Shaping the 2025 Landscape
Several dynamics are influencing investor behavior:
- Self-directed investors are driving adoption across both retail and institutional segments.
- Bitcoin’s appeal stems from macro tailwinds: geopolitical tension, fiscal deficits, inflation hedging.
- Ethereum faces a challenge as a “portfolio amplifier” rather than a true diversifier due to its correlation with tech stocks.
Yet understanding is deepening. Investors increasingly recognize the functional differences between Bitcoin (store of value) and Ethereum (programmable platform).
Protocol Upgrades & Institutional Priorities
As Ethereum and Bitcoin evolve through upgrades (e.g., scalability improvements), BlackRock evaluates implications through an institutional lens:
- Preference for open architectures over closed ecosystems
- Emphasis on interoperability and scalability
- Operational feasibility at massive scale
This explains BlackRock’s shift toward public blockchains for tokenization projects — such as its tokenized U.S. Treasury fund — rather than permissioned ledgers.
Regulatory Outlook and Policy Shifts
With a new U.S. administration expected to favor market-friendly policies, regulatory sentiment may shift. The anticipated departure of SEC Chair Gary Gensler marks a potential inflection point.
Samara notes that U.S. markets have historically balanced innovation with investor protection better than others — a model that fostered global leadership. Recent regulation was shaped by the 2020–2021 surge in retail participation fueled by zero-commission trading and stimulus funds.
Looking ahead, BlackRock advocates for:
- Clear definitions of digital asset classifications
- Defined regulatory jurisdictions
- Public-private collaboration
Legislative efforts like FIT 21 and stablecoin bills are positive steps — but must integrate with TradFi to avoid siloed systems.
The Road to 2025: Three Pillars of Growth
BlackRock’s digital asset strategy rests on three pillars:
- Cryptocurrencies (Bitcoin & Ethereum ETPs)
- Tokenized real-world assets (e.g., bonds, equities)
- Stablecoins
The firm remains focused on client-driven innovation rather than chasing hype. As Samara concludes, the industry is approaching a potential “golden era”, powered by:
- Lower-cost blockchain infrastructure
- Improved developer tooling
- Increasing regulatory clarity
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The convergence of traditional finance and blockchain is no longer theoretical — it’s underway. And with institutions like BlackRock shaping the transition, 2025 could mark the year when crypto becomes a structural part of global portfolios.