- Financial advisors have been highly selective in approving new spot Bitcoin ETFs, with Carson Group greenlighting just 4 out of 10 funds. The firm chose the largest ETFs from BlackRock and Fidelity, as well as lower-cost offerings from Bitwise and Franklin Templeton.
- Carson prioritized established providers like BlackRock and Fidelity, as well as low fees, citing Bitwise and Franklin Templeton’s 0.2% and 0.19% expense ratios. Their commitment to research was also a factor.
- Getting platform approval from advisors is critical for Bitcoin ETF issuers to tap into the massive advisor market and client assets. As more advisors embrace these funds, issuers are ramping up efforts to gain approvals and build market share in this channel.
Financial advisors have long been the holy grail for fund issuers, controlling access to trillions in assets. As a new wave of Bitcoin exchange-traded funds (ETFs) hits the market, advisors are being selective in deciding which to embrace.
Major Platform Greenlights Just Four Funds
Carson Group, a $30 billion registered investment advisor, has approved only 4 of the 10 new spot Bitcoin ETFs. The firm chose the 2 largest funds – BlackRock’s $6.6 billion iShares Bitcoin Trust and Fidelity’s $4.8 billion Wise Origin Bitcoin Fund – due to their significant asset growth and trading volume. It also picked lower-cost offerings from Bitwise and Franklin Templeton.
Prioritizing Established Providers and Low Fees
According to Carson’s Grant Engelbart, it was important to include BlackRock and Fidelity given their scale and expertise. Meanwhile, Bitwise and Franklin Templeton offer the lowest fees in the space at 0.2% and 0.19%, respectively. Their commitment to research was also a factor.
Accessing a Massive New Investor Base
For ETF issuers, getting on platforms like Carson is critical to tap into the advisor market and their vast client assets. Firms like Fidelity and Charles Schwab already offer the funds, while others take a more cautious approach. Platform approval can be a “huge catalyst” for asset growth, according to Bitwise’s Hunter Horsley.
The Future of Bitcoin ETF Adoption
As more advisors embrace Bitcoin ETFs, issuers are ramping up efforts to get their funds approved and build market share. With advisor platforms representing over half of US wealth, their buying decisions will play a major role in determining winners and losers. Though access was limited in the past, the success of recent ETFs is making gatekeepers take another look.
