According to a Bloomberg report, LPL Financial, which is one of the biggest companies that offer financial services, has chosen to take it slowly on the new spot Bitcoin ETFs to its clients.
Rob Pettman, the head of the wealth management solutions at the company said they will take the next three months to test the validity of the ETFs before running them and making them available to the public.
Pettman is also worried about the history of ETF closure since few funds that were introduced with the trendy theme ended up being closed for lack of enough assets to continue with the exercise. He intends to ensure that the new bitcoin ETFs have “a middle to long-term maturity” and “a strong investment theory.”
Other financial entities, such as Fidelity and Charles Schwab have even gone ahead to introduce spot Bitcoin ETFs based on spot Bitcoin prices. But Vanguard has not given any indication that they will be running them.
Till date, LPL is only offering Grayscale’s GBTC Bitcoin Trust which was a trust structure prior to tax benefits being offered as an exchange-traded fund. Nine others including IBIT from BlackRock and Fidelity Phantom Bitcoin Trust are still being reviewed.
Pettman remarked that the size of assets for management will be the case that will determine AUM. At this point, AUM for the new Bitcoin ETFs range substantially, with the iShares Bitcoin Trust from BlackRock having the most capital, amounting to $3 billion, and WisdomTree the least, with under $12 million.
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