The Carlson Group is making waves in the financial services arena by incorporating four out of ten Bitcoin exchange-traded funds (ETFs) into its arsenal for registered investment advisers (RIAs). This bold move by the investment giant, boasting a hefty $30 billion under management, signals a strategic pivot towards embracing the burgeoning cryptocurrency market.
Their selection criteria hinged on three pivotal factors: the potential for asset growth, trading volume, and, importantly, affordability in terms of fees. This discerning choice has led them to opt for offerings from industry heavyweights such as BlackRock, Fidelity, Bitwise, and Franklin Templeton, a decision made public on February 23.
The Race for Low Fees and High Growth
Carlson’s picks stand out for their financial attractiveness and growth trajectory. Since its launch on January 11, BlackRock’s iShares Bitcoin Trust (IBIT) has seen a remarkable $6.6 billion poured into its coffers. Not far behind, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has attracted $4.8 billion. Bitwise’s Bitcoin ETF (BITB) and Franklin Templeton’s Bitcoin ETF (EZBC) are leading the charge in affordability, with fees set at 0.2% and 0.19% respectively, the lowest among their peers.
Grant Engelbart, a key strategist at Carlson, emphasized the value of Bitwise and Franklin Templeton’s commitment to low costs, substantial inflows, and robust trading volumes. He highlighted the firms’ in-house expertise in digital assets as instrumental for both product management and advisor education. Such strategic alliances are not just about offering value to clients but also about fostering a deeper understanding of the crypto market among advisors.
A Gateway for Widespread Crypto Adoption
Financial advisor platforms play a crucial role as conduits for introducing cryptocurrency products to broader audiences. Giants in the trading industry, like LPL Financial Holdings, are in the process of evaluating these newly approved Bitcoin ETFs. Their endorsement could unlock these funds for over 19,000 independent financial advisors managing assets north of $1.4 trillion. Notably, Fidelity and Charles Schwab have already made these ETFs accessible to financial advisors, indicating a growing acceptance of cryptocurrency products in mainstream financial services.
James Seyffart, an ETF analyst at Bloomberg, pointed out the meticulous due diligence required by trading platforms before embracing Bitcoin funds. This process, aimed at curating a list of approved investment options, ensures that advisors are only exposed to vetted, reliable financial products.
Since hitting the American stock market 43 days ago, the nine newly launched Bitcoin ETFs have collectively amassed 287,315 bitcoins, worth approximately $14.6 billion. BlackRock’s IBIT leads with an impressive 126,950.12 bitcoins, representing 44.18% of the total assets held across all nine ETFs. FBTC by Fidelity follows, with its holdings making up 31.89% of the combined assets. The landscape is rapidly expanding, with ARKB, BITB, and others marking significant presences in the market.
Remarkably, the Grayscale Bitcoin Trust (GBTC) has seen a decrease in its bitcoin holdings, now standing at 446,476.36 bitcoins valued at $22.72 billion. This reduction of about 170,603.63 bitcoins over the last 43 days reflects the dynamic shifts occurring within the U.S. spot BTC ETF market, where GBTC still maintains the largest bitcoin reserves.
