LPL Financial Holdings will take 3 months to decide whether to offer Bitcoin investment or not 


For now, LPL Financial Holdings decided not to allow Bitcoin spot ETF for its clients but soon may allow.

LPL Financial Holdings Inc. Is one of the largest American broker-dealers. In 1989, this company was established following the merger of two brokerage firms, Linsco and Private Ledger.  As per available records of 2020, this company had more than 17,500 financial advisors, over $1 trillion in advisory and brokerage assets, and generated approximately $5.9 billion in annual revenue for the 2020 fiscal year.

On 3 Feb 2024, Bloomberg reported that LPL Financial decided not to allow its clients to offer Bitcoin spot ETF products, a financial product approved by the American securities regulatory body SEC which allows stock assets investors to invest in Bitcoin on behalf of Fund managers.

This means the company’s 19,000 independent financial advisors, who manage $1.4 trillion in assets, are not allowed to advise & allow investors to invest in Bitcoin spot ETF products.

It doesn’t mean that the company directly considered these financial products as a bad investment asset, instead, the company will first analyse itself to find out the degree of profit & loss changes with these products. The company will make its final decision on the Bitcoin spot ETF within the next 3 months.

So we can expect that there are chances that LPL Financial may allow Bitcoin to spot ETF products for its clients after 3 months.

Reaction against US Bitcoin spot ETF products 

Following the approval of Bitcoin spot ETF products in the US, the majority of the country’s regulatory bodies responded and warned all the brokers not to offer American Bitcoin spot ETF products, as Bitcoin is a speculative asset in their purview.

In particular, Indian Central Bank governor Shaktikant Das passed a very harsh comment. First, he said that he doesn’t understand what people are trying to achieve with Bitcoin & also said that only a small number of people make money but the rest of them face losses.

He also said that Bitcoin is not good for developing countries but countries like America can easily handle the risks.

The Central Bank governor also dragged attention toward the risk warning by the US SEC over Bitcoin spot ETF products.

Read also: $1.2 Trillion valued social media giant ready to promote Bitcoin spot ETF products