Key Points
- Financial advisory firm Cetera has approved the use of four U.S. spot bitcoin ETFs for its network of advisors.
- The firm estimates that approximately 50 million people own Bitcoin as of February 2024.
Cetera, a wealth management and financial advisory firm, has given the green light for the use of four U.S. spot Bitcoin exchange-traded funds (ETFs) by its network of 9,000 affiliated professionals.
Spot Bitcoin ETFs Approved
The ETFs chosen include BlackRock’s IBIT, Fidelity’s FBTC, Franklin Templeton’s EZBC, and Invesco’s BTCO. These were selected based on the providers' successful track record in launching new product strategies, equipped with the necessary resources, tools, and knowledge, according to an announcement from Cetera.
The firm's new policy regarding the use of these ETFs in brokerage accounts also includes educational resources. These are intended to assist financial professionals in advising clients on adding the funds to their investment portfolios, with training set to begin on March 25.
Bitcoin ETFs as a Competitive Advantage
Cetera is said to be one of the first wealth management firms to establish a formal Bitcoin policy. The firm notes an "exponential" increase in investors exploring these products and seeking exposure to the cryptocurrency.
Cetera's Head of Investment Products and Partner Solutions, Matt Fries, said in the statement, "We are prudently embracing Bitcoin ETFs and prioritized developing this important guidance to help our financial professionals implement these products in client portfolios." He added that the firm would continue to evaluate the implications of Bitcoin ETFs and related products, modifying policies as necessary.
The adoption of U.S. spot Bitcoin ETFs is expected to gain momentum with two additional "massive catalysts" anticipated by the end of the year. The first is the probable availability of Bitcoin ETFs on large national wirehouse platforms in the coming months. The second catalyst is the possible launch of options trading based on the Bitcoin ETFs by September.
However, inflows into spot ETFs slowed as Bitcoin retreated from its latest all-time high of $73,836, resulting in the liquidation of approximately $278 million in Bitcoin positions over the past 24 hours.
