Cetera proclaims ‘prudent embrace’ of spot BTC ETF usage, expert says more to come

• Cetera, a wealth manager, has approved the use of multiple spot BTC ETFs.
• Policy aligns with helping financial professionals best serve their clients while strategically growing their business.
• James Seyffart anticipates more of such offerings as the Bitcoin investment product records growing institutional interest.

Spot Bitcoin exchange-traded funds (ETFs) remain the driving narrative even as the cryptocurrency market has its eyes peeled on the BTC halving that is barely five weeks out. Amid institutional interest in the BTC investment product, wealth managers demonstrate growing interest as they look to maximize their ability to satisfy customer needs.

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Cetera approves use of spot BTC ETFs

Cetera Financial Group has approved the use of spot BTC ETFs. In an official announcement, the wealth management firm has announced a new policy, representing a "prudent embrace of [B]itcoin ETFs and the latest Cetera offering to help financial professionals best serve their clients and strategically grow their business.”

Specifically, the new policy regarding the usage of BTC ETFs will be used in brokerage accounts, including education and resources tailored to help the financial professionals within Cetera’s umbrella to guide their clients on how to integrate Bitcoin ETFs into their investment portfolios. 

The approved spot BTC ETFs include:

• Invesco Galaxy Bitcoin ETF - BTCO
• Franklin Bitcoin ETF - EZBC
• Fidelity Wise Origin Bitcoin Fund - FBTC
• Blackrock iShares Bitcoin Trust - IBIT

According to Cetera, the choice is inspired by the heft of the issuers of these investment products. The wealth manager highlighted that leading ETF providers who have a record of accomplishment successfully launching new product strategies sponsor BTCO, EZBC, FBTC, and IBIT. Additionally, the firm indicated that these four issuers are well-positioned with established resources, tools, and knowledge. 

More wealth managers to approve spot BTC ETFs, James Seyffart

James Seyffart, an ETF specialist with Bloomberg Intelligence, believes the move will inspire more of such offers.

The move is a landmark, putting Cetera up on the leaderboard as one of the first wealth management firms to introduce a formal policy on BTC ETFs. The move is catalyzed by the growing number of investors, both retail and institutional, who continue to show interest in BTC ETFs. One user on X observes that “the move is huge,” ascribing the opinion to the fact it has $475 billion in assets under administration (AUA) and $190 billion in assets under management (AUM).

This is because with such a heavy AUA and AUM, billions are expected to flow into crypto, catalyzed by the fear of missing out (FOMO).

Nate Geraci, an ETF executive, has echoed the sentiment, saying, “As expected, we are prudently embracing bitcoin ETFs.” Per the ETFStore president, Cetera’s move is an example of financial advisory firms warming up to ETFs and is using BTC ETFs to distinguish themselves and achieve competitive advantage.  

Cetera’s head of investment products and partner solutions, Matt Fries, acknowledged that the needs of the modern-day investor are contemporary, and the services offered to them must keep abreast of market changes. Despite his endorsement for BTC ETFs, however, Fries noted that Cetera will keep reevaluating the implications of BTC ETFs and related products as part of the commitment to keep abreast of market changes.

Part of these re-evaluations is expected to demand policy adjustments, with Cetera demonstrating openness to collaborating with financial professionals to improve customer service delivery.