US-Based Wealth Management Firm Gets Into Bitcoin

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Written By Maya Cantina

Private wealth management firm Wedmont Private Capital has acquired 3,471 shares of Fidelity Wise Origin Bitcoin Fund (FBTC) that are worth $209,336, according to a recent regulatory filing.    

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Wedmount’s selling point is its flat fee of $10,000 which is supposed to set it apart from competitors that offer asset-based fees. 

According to its website, the firm is targeting high-net-worth individuals with more than $1 million worth of investable assets. 

The firm was co-founded by Dominic Corabi, a former executive at the Financial Advisor Services division of Vanguard, as well as James Pelletier, former vice president within the UHNW division of UBS.

The two met each other when they were working for the Switzerland-based global investment bank and financial services firm Credit Suisse.

Fidelity’s Bitcoin ETF was approved alongside other competing Bitcoin ETF products in early January. As reported by U.Today, it attracted a modest $3 million worth of Bitcoin on Tuesday, lagging far behind BlackRock’s $128.7 million.

According to a survey published by Bitwise, the vast majority of financial advisers who were interested in crypto were specifically waiting for the approval of exchange-traded funds before dipping their toes into crypto. 

As previously noted by Eric Balchunas, senior ETF analyst at Bloomberg, financial advisors do not typically want to deal with “the shady-ness and costs of crypto exchanges.” At the same time, they are comfortable with ETF products. 

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