Cetera Financial Group unveils policy to allow Bitcoin ETF exposure for RIAs, brokers

Cetera Financial Group has introduced a new initiative aimed at supporting financial advisors with the integration of spot Bitcoin ETFs into investment strategies.

The policy, revealed in a March 14 press release, marks a pivotal step in accommodating the growing investor appetite for investment options involving Bitcoin.

Cetera has an impressive roster of over 12,000 financial advisors and holds roughly $475 billion in assets under management, making it one of the largest wealth management services in the US.

The new policy places the company among the early adopters in the wealth management industry to offer structured guidance on Bitcoin ETFs in response to growing investor interest in these financial products.

Four ETFs

The policy specifically greenlights four spot Bitcoin ETFs for use within the firm: Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Fidelity Wise Origin Bitcoin Fund (FBTC), and Blackrock iShares Bitcoin Trust (IBIT).

Cetera said that each of these funds is supported by ETF providers renowned for their strategic product offerings and extensive resources, which ensures its financial advisors can leverage a robust framework.

The new program is designed to provide financial advisors with educational resources, training, and tools necessary for advising clients on Bitcoin ETF investments.

Matt Fries, who oversees investment products and partner solutions at Cetera, said the company’s approach to Bitcoin ETFs involves careful consideration and support for financial advisors to meet the changing needs of investors.

The firm also announced plans to launch specialized training sessions for its financial professionals through its award-winning AdviceWorks portal starting March 25.

The educational initiative is part of Cetera’s broader strategy to ensure that its advisors are well-prepared to guide their clients through the nuances of investing in Bitcoin ETFs, thereby reinforcing the firm’s position as a forward-thinking leader in the wealth management sector.

TradFi’s growing interest

Cetera’s decision to formalize a Bitcoin ETF policy reflects a strategic response to the surging interest among investors in crypto-related investment vehicles.

The sentiment is starting to permeate the entire traditional financial industry, with Wall Street giants like Bank of America and Wells Fargo recently announcing they will allow clients to invest in Bitcoin ETFs.

Meanwhile, Bitwise recently revealed that it and other ETF issuers are in the middle of serious due diligence discussions with major financial institutions interested in Bitcoin. The firm added that these entities are expected to start purchasing Bitcoin via ETFs starting in the second quarter.

The ETFs have seen record-breaking performance since their launch in January and collectively hold close to $60 billion in assets under management as of March 14.