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
The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
- The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
- A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
- A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
Read more: Cleantech investments to top fossil fuels for the first time in 2025
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Chevy just introduced new deals on the Equinox and Blazer EV models to make them even more affordable. With 0% interest and a new trade-in bonus, Chevy is offering over $5,000 in savings.
Chevy adds new Equinox and Blazer EV deals in January
Although the Chevy Equinox EV is already “the most affordable” EV in its class with over 315 miles range, it’s getting even cheaper.
Earlier this week, Chevy launched new deals on the 2024 Equinox and Blazer EV models. According to a note sent to dealers, viewed by CarsDirect, the electric SUVs are now available with 0% APR financing for 60 months. You can also choose from 0.9% AP for 72 months and 2.9% APR for 84 months.
This marks the best financing offer on Chevy’s newest EVs to date. The previous best rates were 0.9% APR for 60 months, 3.9% for 72 months, and 5.9% for the longer 84-month option.
On a 7-year $45,000 loan, online auto research firm CarsDirect estimates the new deals amount to around a $5,200 price cut. The lower APR rates are already offered on the Chevrolet Silverado EV pickup.
In addition, Chevy is offering a trade-in bonus of up to $3,000 on the Silverado EV and $1,000 on the electric Equinox and Blazer models. If you choose to lease, the bonus is cut in half: $1,500 for the Silverado and $500 for the electric SUVs.
Chevy’s new EV deals started on January 14 and run through March 3, 2025. The deals come as rivals like Hyundai and Ford recently launched new EV promotions.
On Thursday, Hyundai launched a new promo on the upgraded 2025 IONIQ 5, which includes monthly leases as low as $199 and a free ChargePoint home EV charger (or $400 charging credit). Meanwhile, Ford extended its “Power Promise” program earlier this month, which also includes a free home charger, among several other benefits.
The 2024 Chevy Equinox EV started at $41,900 with up to 315 miles range. Prices for the electric Chevy Blazer start at $43,690 with up to 279 miles range.
If you are ready to try out Chevy’s new electric SUVs for yourself, we’ve got you covered. You can use our links below to view offers on the Chevy Equinox, Silverado, and Blazer EV models near you.
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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 non-Tesla EVs getting Supercharger access, Cybertruck sales in the spotlight, Rivian getting some money from Biden, and 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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