Cetera, a prominent wealth management firm with over $190 billion in assets under management, has greenlit four spot Bitcoin exchange-traded funds (ETFs) for its clients. The move marks a significant step in embracing cryptocurrency investment opportunities within its portfolio offerings.
Cetera has chosen four Bitcoin ETFs for its platform, including the Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Fund (FBTC), and Blackrock iShares Bitcoin Trust (IBIT). These selections were made based on the track records of the ETF providers in successfully launching new product strategies.
Matt Fries, Cetera’s head of investment products and partner solutions, highlighted the importance of prudently embracing Bitcoin ETFs and expressed confidence in guiding financial professionals to implement these products effectively in client portfolios.
Cetera plans to initiate training sessions for its 12,000 affiliated financial professionals on the spot Bitcoin ETFs starting March 25. This education initiative aims to equip advisors with the necessary knowledge and tools to incorporate these ETFs into client investment strategies effectively.
The Bitcoin ETFs offered by Cetera will be available only to commission-based accounts, with investment limits based on clients’ risk preferences. This approach reflects Cetera’s commitment to responsible wealth management and aligning investment decisions with clients’ risk tolerance levels.
The approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) in January has sparked significant interest and investment inflows into the cryptocurrency market. Despite occasional market corrections, institutional and corporate interest in Bitcoin continues to grow, contributing to sustained cash inflows.
Cetera joins other wealth management firms like Charles Schwab, Robinhood Markets, UBS, Merrill (Bank of America), and Wells Fargo’s brokerage unit in offering Bitcoin ETFs to clients. However, political opposition to spot Bitcoin ETFs has emerged, with Democratic senators urging caution and restraint in approving further ETFs.
According to Cetera, the number of Bitcoin owners reached 50 million in February, representing a notable increase from the previous year. This surge in ownership underscores the growing mainstream acceptance and adoption of Bitcoin as a legitimate asset class among retail investors.
In summary, Cetera’s decision to embrace Bitcoin ETFs reflects broader industry trends and growing investor demand for cryptocurrency investment opportunities within traditional wealth management portfolios.
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