Summary
US bitcoin ETFs are seeing a surge in interest, putting pressure on firms that don’t offer them. Record inflows and trade volumes have been reported. Demand is largely from retail investors, with more firms expected to allow clients to invest. Some platforms have specific requirements for approving ETFs. Big firms like BlackRock and Fidelity have seen significant assets under management. Wealth managers are facing pressure to offer bitcoin ETFs, with some already doing so. While some firms are hesitant, others are ready to allocate to bitcoin ETFs for interested clients. Bitcoin’s price is rising, and inflows into ETFs are increasing. Financial advisers are expected to allocate billions into bitcoin ETFs in the next few years, but lack of literacy around digital assets remains a challenge.
Key Points
1. The surge in interest for US bitcoin ETFs is putting pressure on firms that do not currently offer access to them, with record net inflows and trade volumes being reported.
2. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) have reached significant assets under management milestones, while Grayscale Investments’ Bitcoin Trust ETF (GBTC) has assets totaling about $27 billion.
3. Despite some firms like Vanguard blocking access to bitcoin ETFs due to perceived weak investment cases, others like Fidelity, Charles Schwab, Wells Fargo, and Bank of America’s Merrill have started offering these funds to their clients, signaling a growing acceptance in the industry.