Bank of America’s Merrill, Wells Fargo offer Bitcoin ETF products for clients
BANK of America’s Merrill arm and Wells Fargo & Co’s brokerage unit are offering access to exchange-traded funds (ETFs) that invest directly in Bitcoin, underscoring the increasing acceptance of the products by mainstream firms.
The banks are offering the approved ETFs to some wealth management clients with brokerage accounts who request the products, according to sources familiar with the matter, who asked not to be identified discussing private information.
After years of industry speculation, nearly a dozen Bitcoin ETFs won approval from United States regulators in January – with the landmark decision sparking a surge in demand for the vehicles. But even with regulators’ blessing, it is up to firms whether to offer trading in the Bitcoin-linked products and some may be reluctant to jump into a volatile asset class.
Many are diving in. Bank of America’s Merrill and Wells Fargo join Charles Schwab and Robinhood Markets, which started offering the spot Bitcoin ETFs shortly after their approval. UBS Group is also offering a number of the Bitcoin ETFs to some of its wealth management clients with brokerage accounts on an unsolicited basis, Bloomberg reported in January. Morgan Stanley is evaluating adding spot Bitcoin ETFs to its platform, according to CoinDesk. A representative for Morgan Stanley declined to comment to Bloomberg
Vanguard Group is among firms holding off, saying in a Jan 24 blog post that “crypto is more of a speculation than an investment”.
A representative for Wells Fargo confirmed spot bitcoin ETFs are available – since their approval by the Securities and Exchange Commission – for unsolicited purchases, either through Wells Fargo Advisors or the bank’s online WellsTrade platform. A representative for Bank of America declined to comment.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The moves come as Bitcoin continued to rally to the highest price in more than two years. Bitcoin has jumped over 40 per cent already this year atop the successful debut of the ETF products, which directly hold the token. The batch of funds from the likes of BlackRock and Fidelity Investments went live on Jan 11, wooing net inflows of about US$7.4 billion to date. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Central banks need digital currencies to stay relevant
China’s CICC demotes senior bankers, cuts pay to slash costs
Citi promotes Damien Tan to corporate banking head for Singapore
Australian dollar firm as bulls bet on hawkish turn at RBA
ECB rate cut case getting stronger, says chief economist Lane
RBNZ has limited scope to cut cash rate this year: OECD