Cetera Financial Group, a broker/dealer network that manages more than $475 billion in assets, has approved four spot Bitcoin ETFs for use by its 12,000 affiliated advisors. The firm also has a formal policy on the use of ETFs in brokerage accounts, including providing required training on the firm’s AdviceWorks portal starting March 25.
In January, the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETF proposals, a major shift in the industry’s relationship with cryptocurrencies. ETFs have seen More than $11 billion in capital inflows Since its inception, according to Bloomberg data.
Cetera will allow advisor referrals Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origins Bitcoin Fund (FBTC) and BlackRock iShares Bitcoin Trust (IBIT).
“Selected funds are sponsored by leading ETF providers with a track record of successfully launching new product strategies and with proven resources, tools and knowledge,” the company said in a statement.
Matt Fries, head of investment products, said: “We will continue to actively evaluate the impact of Bitcoin ETFs and related products and modify our policies accordingly. We look forward to working with our financial professionals to adopt Bitcoin ETFs for clients when the time is appropriate. .” and Cetera partner solutions, in a statement.
Several other independent broker/dealers have also published policies regarding the use of Bitcoin ETFs. Cambridge Investment Research, for example, restricts its 3,800 advisers from purchasing these funds unless they undergo a training program created by the company.
Geneos Wealth Management, a hybrid broker/dealer and RIA with $10 billion in assets, has approved three Bitcoin ETFs for use on its platform, including Grayscale Bitcoin Trust ETF (GBTC)IBIT and ProShares Bitcoin Strategy ETF (BITO), invest in Bitcoin futures. In order to invest in ETFs, Geneos advisors must take continuing education courses on new products, and they must sign documents stating that they have read the prospectus.
When ETFs were first approved, Commonwealth Financial Network did not allow its more than 2,100 advisors to recommend them or add them to client portfolios at will, according to a source close to IBD who spoke on condition of anonymity. Consultants are limited to accepting unsolicited product orders.
LPL Financial said GBTC is currently the only Bitcoin ETF approved for use at the nation’s largest IBD, which has about 22,000 advisors. Kate Winters, senior vice president of wealth management services, said the firm will not launch the new ETF immediately but is doing its due diligence and putting controls in place to launch later.
The Company’s consultants must complete required training and meet additional account level requirements before they can place an order. Once these requirements are met, the Advisor may solicit purchases in brokerage and advisory accounts and may use available ETFs in advisory accounts at its discretion.
Axtella, which has 716 advisors and more than $22 billion in assets under management, said in January that it would not allow these products to appear on the platform. However, the firm will consider whether to allow advisors to conduct unsolicited trades on behalf of clients in the future at an upcoming product committee meeting.
Last month, Omaha, Nebraska-based RIA Carson Group said it had approved just four new Bitcoin ETFs and had $30 billion on its platform, according to Bloomberg.
