Wealth Management Firm Cetera Approves Usage of Bitcoin ETFs for Advisors
Wealth management and financial advisory firm Cetera has given its approval for the usage of four U.S. spot bitcoin exchange-traded funds (ETFs) for its network of 9,000 affiliated professionals. The approved ETFs include BlackRock’s IBIT, Fidelity’s FBTC, Franklin Templeton’s EZBC, and Invesco’s BTCO. Cetera selected these providers based on their track record in successfully launching new product strategies and their resources, tools, and knowledge.
Cetera is among the first wealth management firms to develop a formal bitcoin policy and aims to help its financial professionals advise clients on adding bitcoin ETFs to their investment portfolios. The company plans to provide educational resources and training starting on March 25 to ensure that advisors have the necessary expertise in this area.
According to Cetera, there is increasing interest among investors in bitcoin and its associated products. The firm estimates that around 50 million people owned bitcoin as of February 2024.
Cetera Head of Investment Products and Partner Solutions Matt Fries expressed his support for embracing bitcoin ETFs, stating that the company will continue to evaluate their implications and modify policies accordingly. He also emphasized the importance of partnering with financial professionals to adopt bitcoin ETFs when appropriate for their clients.
Bitcoin ETFs Poised for Two Major Catalysts
Bloomberg Senior ETF Analyst Eric Balchunas believes that the adoption of U.S. spot bitcoin ETFs will experience two significant catalysts by the end of the year:
- Availability on large national wirehouse platforms: Balchunas predicts that the bitcoin ETFs will become accessible on major wirehouse platforms within the next few months. These platforms manage assets worth between $7 trillion and $10 trillion.
- Launch of options trading: Balchunas anticipates that options trading based on the bitcoin ETFs will be introduced by September.
This positive outlook for bitcoin ETFs indicates potential growth and further mainstream adoption in the coming months.
However, recent market fluctuations have impacted spot ETF inflows. As bitcoin experienced a decline of over 10% from its all-time high of $73,836, approximately $278 million in bitcoin positions were liquidated within the past 24 hours.
Hot Take: Cetera Supports Bitcoin ETFs Amid Growing Investor Interest
Cetera’s approval of four U.S. spot bitcoin ETFs for its affiliated professionals reflects the growing interest in cryptocurrencies among investors. By allowing its financial advisors to include bitcoin ETFs in client portfolios, Cetera is positioning itself at the forefront of this emerging market. The firm’s commitment to providing educational resources and training demonstrates its dedication to helping advisors navigate the complexities of cryptocurrency investments.
The potential catalysts mentioned by Bloomberg’s Eric Balchunas further contribute to the optimism surrounding bitcoin ETFs. Their availability on major wirehouse platforms and the introduction of options trading are expected to drive increased adoption and investment in these products.
However, it is important to note that recent market volatility has affected spot ETF inflows. The decline in bitcoin’s price has led to the liquidation of significant positions. This serves as a reminder that cryptocurrencies can be highly volatile and carry inherent risks.
Overall, Cetera’s support for bitcoin ETFs and the anticipated catalysts in the near future indicate a growing acceptance and integration of cryptocurrencies into traditional wealth management strategies.
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