Corporate Firms Are Carefully Examining Bitcoin Etfs.

Some companies like LPL Financial Holdings are conducting a situation analysis regarding spot Bitcoin exchange-traded funds.

Due to large-scale companies' situation assessment studies, the acceptance of Bitcoin ETFs has slowed down.

Many companies, including major independent brokerage firms like LPL Financial Holdings, are evaluating whether Bitcoin ETFs are suitable for independent financial transactions. Advisors are examining assets worth $1.4 trillion.

Rob Pettman from LPL Financial stated, "We simply want to see how they perform in the markets."

LPL Financial plans to complete its assessment of Bitcoin ETFs within three months. A crucial aspect of the evaluation process is the possibility of closure if the ETFs underperform and fail to accumulate significant assets.

Pettman, speaking to Bloomberg, remarked, "This could be a highly negative experience for investors and financial advisors. Additionally, it's operationally very costly for a company like ours."

According to Bloomberg data, 253 ETFs were closed in 2023, with total assets amounting to $34 million. The list included crypto-related products such as VanEck Digital Assets Mining ETF (DAM) and Volt Crypto Industry Revolution.

Bloomberg's ETF analyst James Seyffart suggested that the adoption of Bitcoin ETFs might be slower than expected. Seyffart, during a webinar held with CryptoQuant in January, highlighted that ETFs could attract $10 billion in the initial years.

"I don't expect it to surpass $100 billion in the first two years... To put it in perspective, gold ETFs in the US have approximately $100 billion in total."

As of January 31st, all approved Bitcoin ETFs collectively held 656,421 Bitcoins, valued at approximately $27 billion.

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