April 19, 2024
Bitcoin ETF

Cetera Approves Four Bitcoin ETFs for Client Offerings

Cetera, a renowned wealth management organization with over $190 billion in assets under management, has approved four spot Bitcoin exchange-traded funds (ETFs), marking a huge entry into the cryptocurrency market.

The selected ETFs include the Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Fund (FBTC), and Blackrock iShares Bitcoin Trust (IBIT). Cetera cited the track records of these providers in successfully launching new product strategies as a key factor in their selection process.

“As expected, we are prudently embracing bitcoin ETFs and we prioritized developing this important guidance to help our financial professionals implement these products in client portfolios.”

Matt Fries, Cetera’s Head of Investment Products and Partner Solutions

Cetera plans to commence training its 12,000 affiliated financial professionals on the spot Bitcoin ETFs starting March 25. However, these ETFs will be available only to commission-based accounts, with investment limits tailored to clients’ risk preferences.

Market Trends and Industry Adoption

The approval of 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) on January 10 has spurred significant cash inflows into Bitcoin. Despite minor corrections, institutional and corporate interest continues to grow, further bolstering the cryptocurrency market.

Cetera joins a cohort of wealth management firms, including Charles Schwab, Robinhood Markets, UBS, Bank of America’s Merrill, and Wells Fargo’s brokerage unit, in offering spot Bitcoin ETFs to clients.

Political Opposition

However, not all are in favor of this trend. Democratic senators recently urged SEC chair Gary Gensler to refrain from approving additional spot Bitcoin ETFs, reflecting emerging political concerns about cryptocurrency investments.

Growing Bitcoin Ownership

According to Cetera, the number of Bitcoin owners increased to 50 million in February, up 20 million from the previous year, highlighting cryptocurrencies’ growing popular adoption.

Cetera’s big entry into the cryptocurrency market comes as the broader financial environment grapples with the opportunities and problems provided by digital assets.

Image by pvproductions on Freepik

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