Cetera opens the doors to Bitcoin: approves the use of 4 spot ETFs

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Cetera has given the green light for the use of spot ETFs on Bitcoin IBIT by BlackRock, FBTC by Fidelity, EZBC by Franklin Templeton, and BTCO by Invesco for its 9,000 affiliated financial professionals. 

This approval was ratified during the last update of the company’s policies and guidelines, which took place on Thursday. In addition, there is a training session planned for professionals on investing in Bitcoin, which will start on March 25th.

Let’s see below all the details. 

Bitcoin spot ETF: Cetera welcomes IBIT, FBTC, EZBC and BTCO

As anticipated, the wealth management and financial advisory firm Cetera has authorized the use of four US-based Bitcoin exchange-traded funds (ETFs) for its 9,000 affiliated professionals.

IBIT by BlackRock, FBTC by Fidelity, EZBC by Franklin Templeton and BTCO by Invesco have been selected for their proven expertise.

Specifically, in order to successfully launch new product strategies, providing the necessary resources, tools, and knowledge, as stated by the company on Thursday.

The new policy regarding the use of Bitcoin ETFs in brokerage accounts includes targeted educational resources to assist financial professionals. 

Especially in offering advice to clients on integrating these funds into their investment portfolios, with the training that will start on March 25th.

In response to the news, Nate Geraci, president of The ETF Store, commented on X as follows:

“Financial consulting companies are now issuing press releases on the use of bitcoin ETFs, trying to use them as a point of differentiation or competitive advantage. Things are getting interesting.”

Others claim to be one of the first wealth management companies to formulate a formal policy regarding Bitcoin. 

Highlight that more and more investors are exploring products and seeking exposure to cryptocurrency, with an expectation of about 50 million people owning bitcoin by February 2024, according to Cetera’s estimates.

New developments for Bitcoin ETFs in the USA

Matt Fries, Head of Investment Products and Partner Solutions at Cetera, regarding the latest news stated:

“As planned, we are cautiously adopting bitcoin ETFs and have prioritized the development of this essential guide to help our financial professionals implement these products in client portfolios. We will continue to proactively analyze the implications of bitcoin ETFs and related products, and adjust our policies accordingly. We look forward to collaborating with our financial professionals to adopt bitcoin ETFs when appropriate with their clients.”

It is expected that the momentum in the adoption of spot bitcoin ETFs in the United States will see two more “huge catalysts” by the end of the year, according to Eric Balchunas, senior analyst at Bloomberg ETF, who revealed these prospects earlier this week.

Initially, Balchunas indicated that it is likely that Bitcoin ETFs will become available on major national wirehouse platforms in the coming months, identified for managing assets ranging from 7 to 10 trillion dollars.

He also anticipated that the second catalyst will be represented by the launch of options trading based on bitcoin ETFs, predicting that these options will be available by September.

Meanwhile, on Thursday, spot ETF inflows slowed down, as the price of bitcoin dropped by over 10% from its last all-time high of $73,836, causing the liquidation of approximately $278 million worth of bitcoin positions in the last 24 hours.

Inflows of Bitcoin ETFs: trends and contrasts

According to Bitmex Research data, Bitcoin ETF inflows were $132 million on March 14th. Despite this significant result, a slowdown compared to the beginning of the week has been observed. 

Among the providers, BlackRock’s Bitcoin ETF recorded the highest inflow, amounting to $345.4 million, while Grayscale’s Bitcoin Trust (GBTC) saw outflows of $257.1 million, slightly down from the previous day. Grayscale

In terms of BTC, the daily net inflow was 1,874 BTC. BlackRock’s ETF accumulated 4,886 BTC, while Fidelity recorded an inflow of BTC. On the other hand, GBTC lost 3,638 BTC. 

The other Bitcoin investment products included in the Newborn Nine have recorded inflows of less than 200 BTC (~14 million dollars) each. However, excluding Grayscale, the Newborn Nine have seen total inflows of 389 million dollars.

The data shows that, despite a significant drop in the price of Bitcoin, net inflows into Bitcoin investment products have continued.

This indicates that, although the landscape of Bitcoin investment products has cooled slightly, there is still a strong interest from investors.