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Financial Advisors Are Waiting for Spot Bitcoin ETFs to Offer Clients, Says Ric Edelman

Photo of Jordan Taylor Jordan TaylorDecember 4, 2023
92,228 1 minute read
Financial Advisors Are Waiting for Spot Bitcoin ETFs to Offer Clients, Says Ric Edelman


Ric Edelman, the founder of Edelman Financial Services and a prominent author in the field of personal finance, elucidated the anticipation within the financial advisory community regarding the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). In a recent episode of Coindesk’s Unchained podcast, Edelman highlighted that financial advisors are eagerly awaiting SEC approval for spot bitcoin ETFs, expressing that once granted, these investment products would likely gain swift approval from compliance departments.

According to Edelman, recent surveys indicate that 77% of financial advisors are poised to incorporate spot bitcoin ETFs into their offerings once regulatory approval is secured. He emphasized that compliance departments are likely to view these products akin to other thematic ETFs, thereby facilitating their inclusion in investment portfolios. Edelman drew parallels with existing thematic ETFs, such as those focused on computer technology, oil and gas, gold, and emerging markets, noting that spot bitcoin ETFs would simply represent investments in blockchain and digital assets.

Providing further context, Edelman disclosed that 47% of financial advisors personally own bitcoin, underscoring their understanding of the innovative nature of the technology and its potential for delivering substantial investment returns. He mused on the forthcoming conversations between advisors and clients, particularly on the topic of bitcoin investments. Anticipating such inquiries, Edelman questioned how advisors would explain their personal bitcoin holdings to clients who inquire about the cryptocurrency, emphasizing the need for transparency in these discussions.

The broader industry sentiment aligns with the expectation that the SEC is likely to approve multiple spot bitcoin ETFs simultaneously. Analysts, including those at JPMorgan, predict a high likelihood of approval, with Bloomberg ETF analyst Eric Balchunas maintaining a consistent estimate of a 90% chance of approval by January 10. This projection has remained unchanged for several months, suggesting a persistent optimism within the financial community regarding the regulatory green light for spot bitcoin ETFs.

Photo of Jordan Taylor Jordan TaylorDecember 4, 2023
92,228 1 minute read
Photo of Jordan Taylor

Jordan Taylor

Jordan Taylor is Sr. Editor & writer from San Diego, CA. With over 20 years and 2650+ articles edited rest assured your Press Release will see traction.

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The chief executive of Binance, the largest global cryptocurrency exchange, plans to step down and plead guilty to violating criminal U.S. anti-money-laundering requirements, in a deal that may preserve the company’s ability to continue operating, according to people familiar with the matter. Changpeng Zhao is scheduled to appear in Seattle federal court Tuesday afternoon and enter his plea, the people said. Binance, which Zhao owns, will also plead guilty to a criminal charge and agree to pay fines totaling $4.3 billion, which includes amounts to settle civil allegations made by regulators, the people said. The deal would end long-running investigations of Binance. Zhao founded the firm in 2017 and turned it into the most important hub of the global crypto market. The criminal probe, in particular, has shadowed the company even as its market share initially grew after the collapse last year of FTX, one of its main offshore competitors. Executives have recently fled Binance, and the exchange has laid off a chunk of its employees this year as the company struggled to come to terms with the U.S. probes. The deal would allow Zhao to retain his majority ownership of Binance, although he won’t be able to have an executive role at the company. He would face sentencing at a later date. The outcome resembles an earlier case that prosecutors brought against the executives of BitMEX, an exchange for trading crypto derivatives that was based in the Seychelles. Its former CEO, Arthur Hayes, pleaded guilty to violating anti-money-laundering law and was later sentenced to two years probation, avoiding a possible prison term of six to 12 months. The Justice Department declined to comment. The deal to be announced on Tuesday doesn’t include a settlement with the Securities and Exchange Commission, which sued Binance and Zhao in June and alleged it violated U.S. investor-protection laws, the people said. Major crypto exchanges such as Binance have decided to litigate with the SEC, believing they can show that cryptocurrencies don’t qualify as the kinds of investments overseen by the SEC. The DOJ’s investigation looked at Binance’s program to detect and prevent money laundering and whether it allowed individuals in sanctioned countries, such as Iran and Russia, to trade with Americans on the exchange, The Journal previously reported. A separate agreement would resolve a civil lawsuit filed against Binance and Zhao earlier this year by the Commodity Futures Trading Commission, one of the U.S. regulators that has tried to police the freewheeling global market, the people said. The $4.3 billion that Binance would pay includes amounts to address the CFTC’s claims and those leveled by agencies of the Treasury Department. The CFTC claimed that Binance for years didn’t have a program to prevent and detect terrorist financing and money laundering. It also said Binance gave Americans access to derivatives such as futures or swaps that can only be traded in the U.S. if they are offered on regulated platforms. Binance never registered with U.S. regulators, making its risky leveraged products off-limits to American traders, the CFTC said. A CFTC spokesman declined to comment. Zhao resides in the United Arab Emirates and had curtailed his travel this year. The United Arab Emirates doesn’t have a mutual extradition treaty with the U.S., although last year the countries signed a treaty that enhances law-enforcement evidence sharing. The U.A.E. remained welcoming to crypto even as countries such as China and the U.S. have cracked down on the unregulated industry. Zhao’s status was a sticking point in negotiations between the government and Binance for months, according to people familiar with the talks.

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