In the fiercely competitive landscape of US-listed spot Bitcoin Exchange-Traded Funds (ETFs), leading registered investment advisory firm Carson Group, with $30 billion on its platform, has strategically approved four out of the recently launched 10 offerings to be offered to its clients.
The Omaha, Nebraska-based firm’s Vice President and Investment Strategist, Grant Engelbart, sheds light on the firm’s focus on “significant asset growth” and trading volume in the selection process, emphasizing the critical aspects that guided their decisions.
This strategic move positions Carson Group as a discerning player in the dynamic Bitcoin ETF market, offering its clients a curated selection of investment options.
Carson Group and The Chosen Few
Among the approved ETFs are BlackRock’s $6.6 billion iShares Bitcoin Trust (IBIT) and Fidelity’s $4.8 billion Wise Origin Bitcoin Fund (FBTC), both attracting significant investor inflows. “We feel it is important to offer these products from two of the largest asset managers in the industry,” Engelbart stated.
Notably, both firms boast in-house digital asset research teams, contributing to the continued growth, management, and education surrounding these products. This highlights Carson Group’s commitment to providing its clients with reliable and well-informed investment choices.
Additionally, Bitwise Bitcoin ETF and Franklin Templeton Bitcoin ETF have secured a spot on Carson’s approved list. Engelbart emphasized that these two, despite being smaller, stand out as some of the least expensive options in the space, charging eventual fees of 0.2% and 0.19%, respectively.
By including more cost-effective options, Carson Group ensures a diverse range of choices for its clients, catering to varying investment preferences.
Platform Approval: A Pivotal Factor
Platform approval is a pivotal factor for Bitcoin ETFs seeking access to financial advisors and their retail clients. Horsley, chief executive of Bitwise, told Bloomberg:
“Over half of US wealth is part of a platform and can only use a product once it’s approved. We frequently hear ‘I want access to bitcoin but our platform hasn’t approved anything yet.’ The platforms are busy but now that there are ETFs and a few over a billion AUM, they’re doing the work.”
Carson Group’s careful selection aligns with the broader industry trend as financial advisers oversee trillions of dollars, making platform approvals a potential catalyst for fund growth.
While some platforms like Fidelity and Charles Schwab have made the funds available for Registered Investment Advisers (RIAs), others, such as LPL Financial, are adopting a wait-and-see approach. Vanguard, on the other end, has chosen to restrict access to Bitcoin ETFs through its brokerage.
Bitcoin ETF Performance Metrics
The landscape for Bitcoin ETFs has undergone notable evolution, with four out of the eleven introduced funds achieving net inflows exceeding $1 billion. Recent data from Farside indicates total net inflows of $232 million into Bitcoin spot ETFs on February 23. BlackRock’s IBIT saw a single-day net inflow of $167 million, demonstrating strong performance and investor appeal.
Carson Group’s decision to integrate select Bitcoin ETFs aligns with the growing trend of increasing assets under management and trading volumes, positioning the firm as a forward-thinking player and industry leader in the financial advisory space.
