BofA’s Merrill and Wells Fargo to Offer Spot Bitcoin ETFs to Clients

UTC by Bhushan Akolkar · 2 min read
BofA’s Merrill and Wells Fargo to Offer Spot Bitcoin ETFs to Clients
Photo: Depositphotos

A representative from Wells Fargo has verified that spot Bitcoin ETFs have been accessible for unsolicited purchases post-SEC approval.

In a major development on Thursday, February 29, Merrill, the arm of Bank of America Corp, and the brokerage unit of Wells Fargo & Co announced that they are now providing access to Bitcoin ETFs, highlighting the growing embrace of such products by mainstream financial institutions.

According to individuals familiar with the matter, the banks are making these approved ETFs available to certain wealth management clients with brokerage accounts upon request. The announcement comes just a day after Morgan Stanley took a similar stand of introducing Bitcoin ETFs to its brokerage platform.

After years of speculation within the industry, US regulators granted approval to nearly a dozen Bitcoin ETFs in January. This significant milestone triggered a major surge in demand for these investment vehicles. However, despite regulatory approval, the decision to offer trading in Bitcoin-linked products ultimately rests with individual firms.

Some of the big players like Vanguard have hesitated to enter the volatile asset class. “Crypto is more of a speculation than an investment,” it said.

Nevertheless, several companies have embraced this opportunity. Bank of America’s Merrill and Wells Fargo have joined Charles Schwab Corp. and Robinhood Markets Inc. in offering spot Bitcoin ETFs shortly after their approval. Additionally, UBS Group AG is providing a selection of Bitcoin ETFs to some of its wealth management clients with brokerage accounts, albeit on an unsolicited basis.

A spokesperson from Wells Fargo has confirmed to Bloomberg that spot Bitcoin ETFs have been available for unsolicited purchases since their approval by the SEC. Clients can access these ETFs through Wells Fargo Advisors or the bank’s online WellsTrade platform.

Bitcoin ETF Inflows Continue Strongly

As Bitcoin surged to $64,000, its highest price in over two years, several significant developments unfolded. Bitcoin’s value has already soared by over 40% this year, propelled further by the successful launch of ETF products specifically designed to hold the cryptocurrency. These funds, introduced by major players such as BlackRock Inc and Fidelity Investments, officially commenced trading on January 11, attracting a notable influx of approximately $7.4 billion in net inflows thus far.

Over the last two days, the total inflows in BlackRock’s spot Bitcoin ETF have skyrocketed past $600 million each day. On Wednesday, February 28, the net inflows across all nine spot Bitcoin ETFs broke all records at $673 million. However, on Thursday, these inflows dropped significantly under $100 million as the GBTC outflows skyrocketed to over $600 million.

Funds & ETFs, Market News, News
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