Cetera, a wealth management company with over $190 billion in assets under management, has given the green light to four spot Bitcoin (BTC) exchange-traded funds (ETFs) that can now be offered to their clients. The selected ETFs for Cetera’s platform are the Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Fund (FBTC), and Blackrock iShares Bitcoin Trust (IBIT). These providers have a proven track record of successfully launching new product strategies, according to a statement by Matt Fries, Cetera’s head of investment products and partner solutions. Starting March 25, Cetera will provide training on the spot BTC ETFs to its 12,000 affiliated financial professionals.
Based on The Wall Street Journal, Cetera will only make the BTC ETFs available to commission-based accounts and will set investment limits based on clients’ risk preferences. On January 10, the United States Securities and Exchange Commission (SEC) approved 11 spot BTC ETFs. The availability of these financial products and the return to a bull market have led to significant cash inflows into BTC, with expectations of continued growth despite minor corrections in the BTC market due to increasing institutional and corporate interest.
Cetera is not the first wealth manager to venture into spot BTC ETFs. Charles Schwab and Robinhood Markets began offering the products as soon as they were available, while UBS offered them on a more limited basis. Bank of America’s Merrill and Wells Fargo’s brokerage unit also provided the ETFs to their wealth management clients upon request.
However, there is political opposition to spot BTC ETFs emerging in the United States. Two Democratic senators wrote to SEC chair Gary Gensler on March 11, urging him not to approve any more spot BTC ETFs. According to Cetera, the number of Bitcoin owners increased by 20 million to reach 50 million people in February compared to a year ago.