Merrill, a division of Bank of America Corp. BAC, and the brokerage arm of Wells Fargo & Co. WAC have begun offering their wealth management clients access to Bitcoin ETFs.
What Happened: The Rollout Of Bitcoin ETFs
Quoting sources, Bloomberg reported that these financial giants are extending these ETFs to select wealth management clientele who express interest in these offerings.
This development follows the Securities and Exchange Commission's approval of nearly a dozen Bitcoin ETFs in January, a decision that led to a notable uptick in demand for these investment vehicles.
Despite the regulatory green light, the decision to list these volatile asset class products rests with the individual firms, with some still on the fence.
Why It Matters: The Financial Sector's Warm Embrace of Bitcoin
The inclusion of Bitcoin ETFs by Merrill and Wells Fargo marks a significant shift, with other major players like Charles Schwab Corp. SCHW and Robinhood Markets Inc. HOOD also joining the fray soon after the ETFs received regulatory approval.
UBS Group AG UBS and potentially Morgan Stanley MS are exploring similar offerings, underscoring a broader industry trend towards embracing cryptocurrency as a legitimate asset class.
However, not all are convinced, with Vanguard Group Inc. expressing skepticism about the investment viability of cryptocurrencies.
Also Read: Bitcoin Bear Peter Schiff Gets Roasted: 'At What Point Do You Admit You've Been Wrong?'
What’s Next/Price Action: The Future of Bitcoin in Mainstream Finance
As Bitcoin's value surges, hitting its highest price in over two years with a 40% increase this year alone, the success of these ETFs, which directly hold Bitcoin, is undeniable.
With initial offerings from financial behemoths like BlackRock Inc. BLK and Fidelity Investments attracting approximately $7.4 billion in net inflows, the trajectory for Bitcoin and similar cryptocurrencies appears promising. Yet, the stance of some firms, like Vanguard, serves as a reminder of the ongoing debate regarding the speculative nature of cryptocurrencies.
Price Action: At the time of publication, Bitcoin BTC/USD was up 0.4% in 24 hours at $61,386, according to Benzinga Pro.
Read Next: $6.26M And Rising: Inside Donald Trump's Surging Crypto Portfolio
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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