(Bloomberg) — Bank of America’s Merrill Lynch unit and Wells Fargo’s brokerage unit are offering ETFs that invest directly in Bitcoin, underscoring the growing acceptance of these products by mainstream companies.
Banks are offering approved ETFs to some wealth management clients with brokerage accounts who want the products, according to people familiar with the matter who asked not to be identified discussing private information.
read more: Vanguard abandons Bitcoin ETF trading amid Merrill Lynch review
After years of industry speculation, nearly a dozen Bitcoin ETFs received approval from U.S. regulators in January, a landmark decision that triggered a surge in demand for Bitcoin ETFs. But even with regulatory support, whether to offer trading in Bitcoin-related products is still up to companies, and some may be reluctant to enter the more volatile asset class.
Many people are actively participating. Bank of America’s Merrill Lynch and Wells Fargo join Charles Schwab and Robinhood Markets, which began offering spot Bitcoin ETFs shortly after being approved. According to a January report by Bloomberg, UBS Group AG has also proactively offered some Bitcoin ETFs to some wealth management clients with brokerage accounts. Morgan Stanley is evaluating adding a spot Bitcoin ETF to its platform, according to CoinDesk.A representative for Morgan Stanley declined to comment to Bloomberg
Vanguard Group Inc. and other companies said in a Jan. 24 statement that the company was suspending acquisitions. Blog article “Cryptocurrency is more of a speculation than an investment.”
read more: ETF demand hits record high, Bitcoin rises to $60,000
A Wells Fargo representative confirmed that since the SEC’s approval, the spot Bitcoin ETF can be actively purchased through Wells Fargo Advisors or the bank’s online WellsTrade platform. Representatives for Bank of America declined to comment.
The moves come as Bitcoin continues to rise to its highest price in more than two years. Bitcoin has gained more than 40% this year with the successful launch of ETF products that hold the token directly. A group of funds from firms including BlackRock Inc. and Fidelity Investments launched on Jan. 11 and have attracted about $7.4 billion in net inflows so far.
