Home
News
- 1 The LPL Financial Holdings is examining the recently approved Bitcoin ETFs.
- 2 “We just want to see how they work in the markets,” VP of LPL Financial Holdings Rob Pettman said.
- 3 Following the approval of Bitcoin spot ETFs, Bitcoin prices faced a significant decline, and on January 23, they fell from 43k to 39k.
The adoption of the newly approved Bitcoin spot ETF has slowed down by pending diligence processes from leading trading platforms. A report by Bloomberg states that firms, such as LPL Financial Holdings are leading independent broker-dealers in the United States.
The company is examining the recently approved Bitcoin ETFs to determine whether they will be available for nearly 19k independent financial advisers overseeing $1.4 Trillion in assets.
The vice president of wealth management solutions for LPL Financial, Rob Pettman, said, “We just want to see how they work in the markets.”
“Due diligence” is a process in which the analysis is performed before making a decision. To avoid future failure, a deep and keen analysis of the data is needed, as well as figuring out the positive and negative sides.
The firm is expected to compile its research in three months, and the findings will support further progress. A significant issue troubling the panel is whether ETFs will get shut down, failing to accumulate substantial assets.
While talking to Bloomberg, Pettman said, “That can be a very negative experience for the investor, for the financial adviser. It’s also incredibly costly for a firm like ours operationally to help to facilitate that” adding “make sure that Exchange Traded Funds are durable over time, that there is a good investment thesis. That’s ultimately the position that we normally come from when evaluating these.”
Around 253 ETFs closed down in the past year with an average amount of assets of $34 Million, according to the data compiled by Bloomberg. The list includes the names of VanEck Digital Assets Mining ETF (DAM) and the Volt Crypto Industry Revolution.
In a private webinar with CryptoQuant, James Seyffart, the analyst at Bloomberg, said the ETFs could attract approximately $10 Billion in their first year.”
Crypto Market Post ETF Approval
After a keen analysis, it is observed that after the approval of Bitcoin spot ETFs, Bitcoin prices faced a significant decline, and on January 23, they fell from 43k to 39k.
However, a sudden momentum followed the decline, and BTC’s price added over $1800 daily. A significant effect in the prices started reflecting on January 12 when they fell more than $3500 in just a few hours.
As of writing, the leader of the crypto market was trading at $43,293 with a surge of 1.64% in the past 24 hours. It is crucial to note that the price of BTC flourished 2.90%. No specific movement is seen in the market capitalization of the entire crypto market, and when writing, it was $1.66 Trillion.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
