The launch of spot bitcoin ETFs should help advisors better connect with clients and gain a larger share of assets.
For the past few years, advisors’ biggest frustration was that they were not able to get access to spot bitcoin investments despite clients asking for it. That’s according to Dave LaValle, global head of ETFs at Grayscale Investments, who was part of VettaFi’s Cryptocurrency Symposium on January 12.
“In absence of their ability to deliver that exposure, they’re losing clients assets,” he added.
Spot bitcoin ETFs allow advisors to offer clients exposure to bitcoin in a wrapper they’re comfortable with. The products enable direct ownership of bitcoin. They also offer the benefits of the ETF structure.
“This is a massive win for the advisory community,” LaValle said.
Paul Cappelli, head of liquid passive strategies at Galaxy Asset Management also participated in the symposium. He wasn’t surprised by advisors’ preference to get access to physical bitcoin via the ETF wrapper.
“I think if you look at any asset class, the ETF seems to always to be now the [wrapper]of choice,” he said.
Many advisors may have had direct ownership of bitcoin themselves. However, when it comes to adding exposure to a client’s portfolio, “you want to feel that it’s liquid; you want to feel that it’s safe. And you don’t want to have concerns about regulation,” Cappelli added.
Grayscale and Galaxy/Invesco’s Spot Bitcoin ETFs
Galaxy is one of the world’s largest digital assets and blockchain investment managers. The firm partnered with asset management giant Invesco to launch the Invesco Galaxy Bitcoin ETF (BTCO).
The firm has deep knowledge of digital assets and experience in investing across all stages of the ecosystem. This will strengthen the operational risk management of the fund, according to a statement from Invesco.
Grayscale’s offering, the Grayscale Bitcoin Trust ETF (GBTC), was previously structured as a trust. That makes it the first bitcoin fund of its kind. Furthermore, GBTC’s history gives it a leg up on its spot bitcoin ETF peers. The fund has amassed a 10-year track record and over $28 billion in assets.
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