Burkett Financial Services, a South Carolina-based financial planner, recently disclosed investments in two Bitcoin exchange-traded funds (ETFs) on April 1.
According to Burkett’s latest Form 13F filing, the firm holds 602 shares of BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF, valued at $24,363. Additionally, Burkett holds 630 shares of ProShares’ Bitcoin Strategy ETF (BITO), which invests in Bitcoin futures, totaling $20,344.
These crypto-related holdings make up only a small portion of Burkett’s $194 million in disclosed investments, which also include traditional ETFs and large-cap stocks like Microsoft and Apple.
Burkett is notable for being the first traditional financial institution to gain exposure to Bitcoin through ETFs. The news of Burkett’s investment comes amidst growing discussions surrounding spot Bitcoin ETFs, with predictions of significant inflows in the future.
Experts suggest that if global wealth managers allocate just 1% of their portfolios to Bitcoin, spot Bitcoin ETFs could see up to $1 trillion in inflows. This potential influx could also have a positive impact on the price of Bitcoin, with predictions that it could be worth more than $1.5 million if institutions allocate more than 5% of their portfolios to the cryptocurrency.
As of April 1, spot Bitcoin ETFs held $74 billion in assets under management, representing over 5% of Bitcoin’s circulating supply based on a market cap of $1.48 trillion. Reports also show that Bitcoin ETFs saw over $800 million in inflows in the week leading up to April 1.
Overall, Burkett Financial Services’ foray into Bitcoin through ETFs reflects a growing trend in traditional financial institutions gaining exposure to the cryptocurrency market.
