Financial advisers, seen as gatekeepers to assets, are being discerning with the newly launched US-listed spot Bitcoin ETFs, a coveted prize for fund issuers. Carson Group, a registered investment advisory based in Omaha, Nebraska, overseeing $30 billion, has greenlit only four out of the 10 new Bitcoin ETFs.
Among the approved are BlackRock’s $6.6 billion iShares Bitcoin Trust (ticker IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), with the highest investor inflows, along with smaller offerings from Bitwise and Franklin Templeton.
Grant Engelbart, vice president and investment strategist at Carson Group, cited “significant asset growth” and trading volume as factors in selecting IBIT and FBTC. Bitwise Bitcoin ETF and Franklin Bitcoin ETF, charging fees of 0.2% and 0.19% respectively, are among the most cost-effective options.
Engelbart emphasized the importance of offering products from major asset managers like BlackRock and Fidelity, highlighting their large inflows, trading volumes, and expertise in digital assets.
Platform access for financial advisors and retail clients is crucial for Bitcoin ETF firms seeking to tap into a new audience. Some platforms, like Fidelity and Charles Schwab, already offer the funds for RIAs to trade, while LPL Financial is taking a cautious approach. Vanguard, on the other hand, has no plans to allow trading of the funds through its brokerage.
Platform approvals can significantly boost fund growth, given that financial advisers manage trillions of dollars, according to Hunter Horsley, CEO of Bitwise. Horsley noted that over half of US wealth is part of a platform and can only access a product once it’s approved, indicating the importance of platform accessibility for ETF success.
