Financial services company, the Carlson Group, has reportedly expanded its offerings for registered investment advisers (RIAs) by adding four of the 10 Bitcoin exchange-traded funds (ETFs). The firm, which manages $30 billion in investments, prioritized asset growth, trading volume, and low fees when selecting funds from BlackRock, Fidelity, Bitwise, and Franklin Templeton, according to a report by Bloomberg on February 23.
The iShares Bitcoin Trust (IBIT) from BlackRock has attracted $6.6 billion in investments since its launch on January 11, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) has seen inflows of $4.8 billion. The Bitwise Bitcoin ETF (BITB) and Franklin Bitcoin ETF (EZBC) have the lowest fees among issuers, charging 0.2% and 0.19% respectively.
Grant Engelbart, the vice president and investment strategist at the Carlson Group, stated, “Bitwise and Franklin Templeton have committed to being the lowest-cost providers in the space, and have also seen large inflows and trading volumes. Both firms also have established in-house digital asset research teams and expertise that we feel are beneficial to the continuing growth and management of the products, as well as adviser research and education.”
Financial adviser platforms play a crucial role in introducing cryptocurrency products to new audiences, and LPL Financial Holdings, a large trading firm, is currently reviewing the recently approved Bitcoin ETFs. If approved, the funds will be available to over 19,000 independent financial advisers overseeing $1.4 trillion in assets. The ETFs are already accessible to financial advisers at Fidelity and Charles Schwab.
According to Bloomberg ETF analyst James Seyffart, the adoption of the Bitcoin fund may be delayed due to the due diligence required by trading platforms. “A lot of the big institutions, these warehouses, these platforms where brokers or advisers work, they can’t just buy anything they want. There’s like an approved list and a not approved list,” explained the analyst.