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Financial Advisors Disclose Bitcoin Investments through ETFs
On April 9, two financial advisors revealed their investments in spot Bitcoin ETFs, shedding light on a growing trend in the industry. Signal Advisors, a promising startup based in Michigan that serves independent financial advisors, disclosed their ownership of 20,571 shares of BlackRock iShares Bitcoin Trust (IBIT). At the same time, Wedmont Private Capital, a distinguished Registered Investment Advisor (RIA) situated in Philadelphia, disclosed their ownership of 3,471 shares of Fidelity Bitcoin ETF (FBTC).
While these Bitcoin ETF shares make up a small fraction of each firm’s investment portfolio, they provide valuable insight into their current strategies. Wedmont manages assets exceeding $1.3 billion, whereas Signal boasts approximately $403 million in assets under management (AUM). The bulk of their investments are allocated to traditional exchange-traded funds (ETFs), stock investments, and various other assets.
Financial Advisors Embrace Bitcoin
The recent disclosures from Signal and Wedmont signal a broader trend among financial advisors and related firms who are venturing into spot Bitcoin ETFs. These two firms are among the early pioneers in adding Bitcoin to their portfolios, setting a noteworthy precedent for the industry. Burkett Financial Services, another firm, joined the trend on April 1 by revealing their ownership of shares in both IBIT and ProShares’ Bitcoin Strategy ETF (BITO).
Industry experts anticipate more firms to follow suit and make similar disclosures in the near future. Independent financial commentator Macroscape foresees larger disclosures as other firms submit similar filings in the “coming weeks,” suggesting a significant shift in investment strategies within the industry.
In response to the growing demand for Bitcoin investment options, Cetera Financial Group launched a new initiative in March to assist financial advisors in integrating spot Bitcoin ETFs into their investment strategies. With a vast network of over 12,000 financial advisors and approximately $475 billion in AUM, Cetera plays a pivotal role in the US wealth management sector.
Marked Increase in Inflows
The rise in inflows highlights the strong performance of spot Bitcoin ETFs and reflects the increasing demand from private companies in the market. Data from Farside as of April 9 indicates that spot Bitcoin ETFs have collectively amassed $12.3 billion in total inflows, including outflows from GBTC, by April 10.
The two leading funds have witnessed a surge in inflows since their launch, with IBIT currently boasting $14.7 billion in total inflows and Fidelity FBTC exceeding $7.9 billion. These funds have set multiple records in the ETF market, maintaining a streak of over 60 trading days with no outflows.
Recent data from CoinShares on April 8 reveals that spot Bitcoin ETFs experienced high inflows of $646 million during the initial week of April, despite a somewhat unfavorable start to the month. This trend underscores the growing interest and confidence in Bitcoin ETFs among investors.
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