Bitcoin ETFs could open floodgates to $30 trillion wealth management market
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Now that bitcoin ETFs are trading across U.S. public markets, many large money managers that have been effectively locked out of crypto finally have a way to access the primary digital currency.
For the $30 trillion advised wealth management industry, the floodgates could be about to open. Analysts at Standard Chartered anticipate fund inflows in the range of $50 billion to $100 billion in 2024.
“Bitcoin is beginning to become a benchmark asset for the younger generation,” said Anthony Pompliano, founder of Pomp Investments. “We know most investors can’t beat benchmarks, so adding the new benchmark to your asset allocation is the only way to try to keep up.”
Bitcoin rose as high as $49,000 on Thursday, reaching levels not seen since December 2021, before dropping Friday to around $43,000. It soared 150% last year following a brutal selloff in 2022.
Wide swaths of the investment world missed out on the 2023 rally. According to VanEck CEO Jan van Eck, many fiduciaries, financial advisors and banks had been explicitly told in the past “not to touch crypto,” due largely to its unregulated nature.
That changed on Wednesday after the Securities and Exchange Commission cleared the sales of spot bitcoin ETFs, allowing investors to access bitcoin the same way they purchase stock and bond index funds. SEC Chair Gary Gensler continues to issue stern warnings when it comes to crypto investments, but that’s not holding back activity.
For its Hundredfold Select Alternatives Fund, mutual fund manager Advisors Preferred Trust is investing up to 15% of total assets for indirect bitcoin exposure through funds and futures contracts, according to a recent prospectus.
Pompliano says “most passive funds are looking for ways to increase performance.”
Bitwise Asset Management is one of the 11 issuers that were granted initial approval for a bitcoin product. Chief Investment Officer Matt Hougan said the Bitwise Bitcoin ETF, which is offering the lowest fee at 0.2% of holdings, is primarily targeting financial advisors and family offices.
“That includes RIAs [registered investment advisors] and includes, eventually, wirehouses — that is a many trillion dollar market,” said Hougan, adding that advisors are “increasingly carving out” an allocation of 1% to 5%. “We know that they’re interested in crypto, and we know that they’ve been waiting for an ETF.”
In a survey of financial advisors recently conducted in conjunction with VettaFi, a data-driven ETF platform, Bitwise found that 88% of advisors interested in purchasing bitcoin were waiting until after a spot bitcoin ETF was approved. Among advisors who already invest in crypto, large allocations (more than 3% of a portfolio) more than doubled to 47% in 2023 from the prior year.
“For the vast majority of people, a low-cost bitcoin ETF is going to be the easiest way to do that,” Hougan said.
According to data from Robinhood, 81% of bitcoin ETF trading volume in the first week was in individual accounts, with the rest in retirement accounts.
Even before the SEC’s announcement Wednesday, the 2022 CFA Institute Investor Trust Study found that 94% of state and local pension plans had some crypto exposure. The new products potentially offer more legitimacy and lower costs for retirement plans that want to increase allocation.
Financial firms are offering differing advice on how best to enter the space.
In a report on its website in October, Galaxy Digital said the “strongest marginal improvement” occurred when portfolios moved from a 0% to 1% bitcoin allocation. As far back as 2019, WisdomTree said that adding bitcoin to a portfolio that’s traditionally 60% equities and 40% bonds “can improve the risk-return profile” and that from 2014 to 2019 “even a one percent allocation led to an 8.3% outperformance versus the base portfolio.”
Fidelity analyzed performance through mid-2022 and noted that “bitcoin boosted a portfolio’s returns during specific periods in the past, though it also came with substantial volatility.” To date, the firm said, bitcoin has not held up well as a hedge against inflation, but it acknowledged that “assessing this was challenging, given that inflation has been low throughout most of bitcoin’s history.”
Castle Island Ventures founder Matt Walsh, who previously led a number of Fidelity Investments’ blockchain and cryptoasset initiatives, said the types of funds quickest to jump into the market are likely to be those with a focus on high-growth tech stocks. But he also sees broader appeal.
“I think you could also see it in commodity-based portfolios, like gold-based funds that see this as a sort of digital gold,” said Walsh.
WATCH: SEC approves bitcoin ETFs
Climate XChange’s Annual EV Raffle is back for the 10th year running – and for the first time ever, Climate XChange has two raffle options on the table! The nonprofit has helped lucky winners custom-order their ideal EVs for the past decade. Now you have the chance to kick off your holiday season with a brand new EV for as little as $100.
About half of the raffle tickets have been sold so far for each of the raffles – you can see the live ticket count on Climate XChange’s homepage – so your odds of winning are better than ever.
But don’t wait – raffle ticket sales end on December 8!
Climate XChange is working hard to help states transition to a zero-emissions economy. Every ticket you buy supports this mission while giving you a chance to drive home your dream EV.
Here’s how Climate XChange’s 10th Annual Raffle works:
The Luxury Raffle
- Grand Prize: The winner can choose any EV on the market, fully customized up to $120,000. This year, you can split the prize between two EVs if the total is $120,000 or less.
- Taxes covered: This raffle comes with no strings – Climate XChange also pays all of the taxes.
- Runner-up prizes: Even if you don’t win the Grand Prize, you still have a chance at the 2nd prize of $12,500 and the 3rd prize of $7,500.
- Ticket price: $250.
- Grand Prize Drawing: December 12, 2025.
- Only 5,000 tickets will be sold for the Luxury Raffle.
The Mini Raffle (New for 2025)
- Grand Prize: Choose any EV on the market, fully customized, up to $45,000. This is the perfect raffle if you’re ready to make the switch to an EV but aren’t in the market for a luxury model.
- Taxes covered: Climate XChange pays all the taxes on the Mini Raffle, too.
- Ticket price: $100.
- Only 3,500 tickets will be sold for the Mini Raffle.
Why it’s worth entering
For a decade, Climate XChange has run a raffle that’s fair, transparent, and exciting. Every ticket stub is printed, and the entire drawing is live-streamed, including the loading of the raffle drum. Independent auditors also oversee the process.
Plus, your odds on the Luxury and Mini Raffles are far better than most car raffles, and they’re even better if you enter both.
Remember that only 5,000 tickets will be sold for the Luxury Raffle and only 3,500 for the Mini Raffle, and around half of the available tickets have been sold so far, so don’t miss your shot at your dream EV!
Climate XChange personally works with the winners to help them build and order their dream EVs. The winner of the Ninth Annual EV Raffle built a gorgeous storm blue Rivian R1T.
How to enter
Go to CarbonRaffle.org/Electrek before December 8 to buy your ticket. Start dreaming up your perfect EV – and know that no matter what, you’re helping accelerate the shift to clean energy.
Who is Climate XChange?
Climate XChange (CXC) is a nonpartisan nonprofit working to help states pass effective, equitable climate policies because they’re critical in accelerating the transition to a zero-emissions economy. CXC advances state climate policy through its State Climate Policy Network (SCPN) – a community of more than 15,000 advocates and policymakers – and its State Climate Policy Dashboard, a leading data platform for tracking climate action across the US.
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The CSC Monterey – one of the most charming little electric scooters on the US market – has dropped to a shockingly low $1,699, down from its original $2,899 MSRP. That’s nearly half off for a full-size, street-legal electric scooter that channels major Honda Super Cub energy, but without the gas, noise, or maintenance of the original.
CSC Motorcycles, based in Azusa, California, has a long history of importing and supporting small-format electric and gas bikes, but the Monterey has always stood out as the brand’s “fun vibes first” model. With its step-through frame, big retro headlight, slim bodywork, and upright seating position, it looks like something from a 1960s postcard – just brought into the modern era with lithium batteries and a brushless hub motor.
I had my first experience on one of these scooters back in 2021, when I reviewed the then-new model here on Electrek. I instantly fell in love with it and even got one for my dad. It now lives at his place and I think he gets just as much joy from looking at it in his garage as riding it.
You can see my review video below.
The performance is solidly moped-class, which is exactly what it’s designed for. A 2,400W rear hub motor pushes the Monterey up to a claimed 30 mph or 48 km/h (I found it really topped out at closer to 32 mph or 51 km/h), making it perfect for city streets, beach towns, and lower-speed suburban routes.
A 60V, roughly 1.6 kWh removable battery offers around 30–40 miles (48-64 km) of real-world range, depending on how aggressively you twist the throttle. It’s commuter-ready, grocery-run-ready, and campus-ready right out of the crate.
It’s also remarkably approachable. At around 181 pounds (82 kg), the Monterey is light for a sit-down scooter, making it easy to maneuver and park. There’s a small storage cubby, LED lighting, and the usual simple twist-and-go operation. And it comes with full support from CSC, a company that keeps a massive warehouse stocked with components and spare parts.
My sister has a CSC SG250 (I’m still trying to convert her to electric) and has gotten great support from them in the past, including from their mechanics walking her through carburetor questions over the phone. So I know from personal experience that CSC is a great company that stands behind its bikes.
But the real story here is the price. Scooters in this class typically hover between $2,500 and $4,500, and electric retro-style models often jump well above that.
At $1,699, the Monterey is one of the least expensive street-legal electric scooters available from a reputable US distributor, especially one that actually stocks parts and provides phone support.
If you’ve been curious about swapping a few car errands for something electric – or you just want a fun, vintage-styled runabout for getting around town – this is one of the best deals of the year.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss a big Tesla Robotaxi setback, the new Mercedes-Benz CLA EV, Bollinger is over, and more.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. Sales end on Dec. 8th for its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit CarbonRaffle.org/Electrek to learn more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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