The Carlson Group, a prominent financial services firm managing $30 billion in assets, has recently expanded its offerings to include four out of ten Bitcoin exchange-traded funds (ETFs), according to a Bloomberg report on February 23. This strategic addition is aimed at providing registered investment advisers (RIAs) with diversified cryptocurrency investment options. The selected ETFs, known for their asset growth, significant trading volumes, and competitive fees, are from leading financial institutions including BlackRock, Fidelity, Bitwise, and Franklin Templeton.
BlackRock’s iShares Bitcoin Trust (IBIT) has seen remarkable growth with $6.6 billion invested since its inception on January 11. Following closely, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has attracted $4.8 billion in inflows. Notably, the Bitwise Bitcoin ETF (BITB) and Franklin Bitcoin ETF (EZBC) stand out for their affordability, charging fees of only 0.2% and 0.19% respectively, making them the most cost-effective options among the issuers.
Grant Engelbart, Vice President and Investment Strategist at the Carlson Group, highlighted the importance of low fees and the firms’ commitment to providing competitive pricing. Both Bitwise and Franklin Templeton have been recognized for their significant inflows and trading volumes. Engelbart also emphasized the value of in-house digital asset research teams and expertise at Bitwise and Franklin Templeton, which he believes will contribute to the products’ growth and management, as well as support adviser research and education.
The integration of cryptocurrency products into financial adviser platforms is seen as a key step in introducing these innovative investment options to new audiences. Major trading entities like LPL Financial Holdings are currently evaluating the recently approved Bitcoin ETFs for potential inclusion. If approved, these funds could become accessible to over 19,000 independent financial advisers managing assets worth $1.4 trillion. Notably, Fidelity and Charles Schwab have already made these ETFs available to their financial advisers.
However, Bloomberg ETF analyst James Seyffart suggests that the adoption of Bitcoin funds may encounter delays due to the rigorous due diligence processes of trading platforms. He explained that large institutions typically maintain approved and non-approved lists for investments, which could slow down the integration of new funds like Bitcoin ETFs. This cautious approach underlines the importance of thorough evaluation in the adoption of cryptocurrency investment products within traditional financial advisory services.
