Cetera Financial Group, a leading Wealth Hub financial advisor, has officially announced its support for four bitcoin spot exchange-traded funds (ETFs). This approval paves the way for its network of financial professionals to incorporate these cryptocurrency funds into their clients' portfolios.
bitcoin's institutional wave is coming
Cetera, which manages assets exceeding $191 billion, is at the forefront of integrating digital asset products into traditional investment frameworks, highlighting the growing acceptance of btc as a legitimate investment option. According to a bitcoin-etf-policy-and-guidance-for-financial-professionals-302088688.html” target=”_blank” rel=”noopener nofollow”>Press releaseCetera has introduced a comprehensive policy and guidance on the use of btc ETFs, emphasizing education and resources for its affiliates.
This initiative aims to equip financial professionals with the tools necessary to effectively navigate the complexities of bitcoin investments. “We are cautiously embracing bitcoin ETFs and prioritizing the development of this important guidance,” said Matt Fries, director of investment products and partner solutions at Cetera.
Approved ETFs include Invesco Galaxy bitcoin ETF (BTCO), Franklin bitcoin ETF (EZBC), Fidelity Wise Origin bitcoin Fund (FBTC), and Blackrock iShares bitcoin Trust (IBIT), all of which are managed by experienced ETF providers known for their innovation. . product strategies.
This strategic decision follows a notable increase in investor interest in btc ETFs, with approximately 50 million people owning bitcoin as of February 2024, an increase of 20 million users from the previous year. Cetera's move is indicative of a broader trend among wealth management firms to incorporate digital assets into their offerings, catering to the changing needs of today's investors.
The selection of these particular ETFs reflects Cetera's preference for products from larger companies with an established track record in traditional finance (TradFi). ETFs managed by BlackRock, Invesco, Fidelity Investments and Franklin Templeton collectively represent a significant portion of the market, with BlackRock's iShares line alone managing more than $2.7 trillion in assets.
Why not all?
While Cetera has opened its doors to these four spot ETFs, it notably did not approve the Grayscale bitcoin Trust ETF (GBTC) due to its higher fee structure, nor did it include Ark 21Shares (ARKB) and Bitwise (BITB), despite of its significant assets under management.
The market has seen a surge in popularity of btc ETFs, with the 10 US spot ETFs recording nearly $12 billion of net inflows in just nine weeks of trading. Cetera's policy and guidance on btc ETFs comes at a crucial time, as more wealth managers and investment platforms are expected to follow suit, expanding access to cryptocurrency investments for a broader range of investors.
James Seyffart, Bloomberg ETF Expert commented via (…) It is likely that we will continue to see stories like this in the coming months.”
Last month, Carson Group, a Nebraska-based registered investment advisor (RIA) with assets under management (AUM) of $30 billion, gave the green light to the use of four spot btc ETFs.
At the time of this publication, btc was trading at $67,790.
Featured image created with DALL·E, chart from TradingView.com
