Bank of America’s, $BAC, Merrill and Wells Fargo, $WFC, to offer Bitcoin ETFs to clients
Bank of America’s, $BAC, Merrill and Wells Fargo, $WFC, to offer Bitcoin ETFs to clients.
Bank of America Corp.'s Merrill division and Wells Fargo & Co.'s brokerage arm are now providing access to ETFs that directly invest in Bitcoin, highlighting the growing acceptance of these products among mainstream firms.
The approved ETFs are being offered to select wealth management clients with brokerage accounts who request them, according to individuals familiar with the matter who requested anonymity to discuss private information.
After years of speculation within the industry, nearly a dozen Bitcoin ETFs were granted approval by US regulators in January. This landmark decision sparked a surge in demand for these vehicles. However, despite regulators' approval, it is up to individual firms to decide whether to offer trading in Bitcoin-linked products, and some may be hesitant to enter the volatile asset class.
Bank of America's Merrill and Wells Fargo join Charles Schwab Corp. and Robinhood Markets Inc., which began offering spot Bitcoin ETFs shortly after their approval. UBS Group AG is also offering several Bitcoin ETFs to some of its wealth management clients with brokerage accounts on an unsolicited basis, as reported by Bloomberg in January. Morgan Stanley is reportedly considering adding spot Bitcoin ETFs to its platform, though a representative declined to comment to Bloomberg.
Vanguard Group Inc. is among the firms holding off, stating in a Jan. 24 blog post that "crypto is more of a speculation than an investment."
A Wells Fargo representative confirmed that spot Bitcoin ETFs have been available for unsolicited purchases, either through Wells Fargo Advisors or the bank's online WellsTrade platform, since their approval by the SEC. A Bank of America representative declined to comment.
These developments coincide with Bitcoin's continued rally to its highest price in more than two years. Bitcoin has already surged over 40% this year following the successful launch of ETF products that directly hold the token. These funds from BlackRock Inc. and Fidelity Investments went live on Jan. 11, attracting net inflows of about $7.4 billion to date.