Major traditional banking institutions like Bank of America and Wells Fargo are now providing access to spot Bitcoin exchange-traded funds (ETFs) for eligible wealth management clients.
These ETFs have been accessible to clients for several weeks, as reported by a source familiar with Bank of America’s strategy to Reuters.
This move follows the approval of these investment vehicles by the Securities and Exchange Commission (SEC) in January, signaling a significant milestone in the acceptance of cryptocurrencies within the conventional financial framework.
Spot Bitcoin ETFs offer investors exposure to the leading cryptocurrency without the need for direct ownership. This trend has gained traction, with some investors shifting their focus from gold-backed ETFs to Bitcoin, often hailed as “digital gold” due to its store of value characteristics.
The positive market sentiment towards spot Bitcoin ETFs is evident in recent performance, with the cryptocurrency surpassing $64,000 for the first time in over two years.
Reports of Bank of America and Wells Fargo’s entry into offering spot Bitcoin ETFs to their clients were initially disclosed by Bloomberg Law. However, Vanguard, a prominent mutual fund provider, has stated that it currently has no plans to include spot Bitcoin ETFs on its brokerage platform for clients.
The participation of traditional banking institutions in the cryptocurrency market highlights the increasing mainstream adoption and acknowledgment of digital assets. Morgan Stanley is also contemplating the addition of spot Bitcoin ETFs to its brokerage platform and is currently conducting due diligence.
Various platforms, including Fidelity, Charles Schwab, and Robinhood Markets, have already begun offering spot Bitcoin ETFs to clients shortly after their launch. Fidelity also offers its own spot Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund (FBTC).
Additionally, UBS Group AG is providing certain SEC-approved spot Bitcoin ETFs to specific wealth management clients with brokerage accounts on an unsolicited basis.
Institutional investors continue to show interest in spot Bitcoin ETFs, with daily trading volumes for US spot Bitcoin ETFs reaching an all-time high of $7.7 billion. BlackRock’s iShares Bitcoin Trust (IBIT) has notably outperformed other Bitcoin ETFs and ETFs of other asset classes, doubling its personal record with $3.3 billion in trading volume.
Fidelity’s spot Bitcoin ETF also achieved a record trading volume of $1.4 billion on the same day.