š²š±š„LPL Financial, which manages $1.4 trillion, follows Bitcoin ETFs
LPL Financial, which has $1.4 trillion of assets under management, will monitor Bitcoin ETFs for some time before investing in them.
Rob Pettman, one of the company's directors, said that they will conduct an evaluation process over the next three months to decide which of the new funds will be offered to customers. āWe just want to understand how these funds work in the markets.ā Pettman said, adding that they may need more time at the end of this evaluation.
Pettman said that ETFs that fail to acquire a significant amount of assets often close, which can create problems for advisers, investors and companies such as LPL. One of the main concerns of the LPL manager about Bitcoin ETFs is this possibility.
āThis can be a very negative experience for the investor and the financial adviser," Pettman said. It is also extremely costly for a company like ours to help facilitate this operationally. Therefore, we need to be careful about the product we add to the platform and make sure that it has a good investment thesis.ā he spoke in the form of.
According to data compiled by Bloomberg, 253 ETFs have closed in the US in 2023. The average asset amount of these ETFs was $34 million. The Decertified ETFs included crypto-related funds such as the VanEck Digital Assets Mining ETF (DAM) and Volt Crypto Industry Revolution and Tech (BTCR). On the other hand, some Bitcoin ETFs, such as BlackRock's IBIT fund, have already reached billion-dollar assets. Another Bitcoin ETF, WisdomTree Bitcoin Fund, has less than $12 million in assets.