LPL Financial, the largest independent broker-dealer in the US, takes a measured approach and conducts a three-month evaluation before entering the Bitcoin ETF spot market.
The San Diego-based brokerage is planning a thorough three-month evaluation before deciding to join the Bitcoin exchange-traded fund (ETFs) market, citing concerns that some of the ETFs could eventually close, causing problems for advisors.
in a interview Writing on Bloomberg, Rob Pettman, executive vice president of product and platform management at LPL Financial, said the $1.4 trillion investment giant wants to first see โhow they work in the marketsโ before deciding what funds the company wants to offer.
Pettman added that the firm will open the doors for financial advisors to buy GrayscaleGBTC ETF from GBTC, as the fund existed in a trust structure and was available on LPL Financial before becoming an ETF. However, speaking of the other nine funds, including Black RockPettman said the company wants to evaluate those funds first.
โTime will tell the investment thesis. And that's essentially what we're monitoring right now.โ
Rob Pettman
The LPL Financial executive is not the first in the cryptocurrency market to expect a change in the pool of spot Bitcoin ETF providers, as Pettman's cautious approach aligns with broader sentiment in the cryptocurrency market. cryptocurrencies.
Grayscale CEO Michael Sonnenshein, for example, previously noted that fewer than five Bitcoin ETFs would survive in the long term, and that even fewer would reach โcritical mass.โ digital galaxy CEO Mike Novogratz also anticipates a change in the size of the place Bitcoin ETF market, foreseeing only two or three winners in the space.
As of press time, the nine new Bitcoin spot ETFs now contain nearly 178,000 BTC worth more than $7.6 billion, according to financial data.
