(Bloomberg) — Bank of America Corp.'s Merrill arm. and the brokerage unit of Wells Fargo & Co. are offering access to ETFs that invest directly in Bitcoin, highlighting the growing acceptance of the products by major firms.
The banks are offering the approved ETFs to some wealth management clients with brokerage accounts who seek the products, according to people familiar with the matter, who asked not to be identified discussing private information.
Read more: Vanguard Opposes Bitcoin ETF Trading While Merrill Appraises
After years of industry speculation, nearly a dozen Bitcoin ETFs won approval from US regulators in January – with the landmark decision sparking a surge in demand for the vehicles. But even with regulators' blessing, it's up to firms whether to offer trading in Bitcoin-related products, and some may be reluctant to jump into a volatile asset class.
Many of them are sinking in. Bank of America's Merrill and Wells Fargo merge with Charles Schwab Corp. and Robinhood Markets Inc., which began offering spot Bitcoin ETFs shortly after their approval. UBS Group AG is also offering a number of 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 Bitcoin ETFs to its platform, according to CoinDesk. A Morgan Stanley representative declined to comment to Bloomberg
Vanguard Group Inc. is among the firms that curbs, saying in a January 24 blog post that “crypto is more of a speculation than an investment.”
Read more: Bitcoin weighs in at $60,000 as ETF demand hits record high
A representative for Wells Fargo confirmed that spot bitcoin ETFs are available — since their approval by the SEC — for unsolicited purchases, either through Wells Fargo Advisors or the bank's WellsTrade online platform. A Bank of America representative declined to comment.
The moves come as Bitcoin continued to rise to its highest price in more than two years. Bitcoin has jumped over 40% already this year on top of the successful debut of ETF products that directly hold the token. Fund group from BlackRock Inc. and Fidelity Investments went public on Jan. 11, attracting net inflows of about $7.4 billion year to date.