February 29, 2024 17:18 | 2 minute read |
A division of Merrill bank of america corporation (NYSE:BAC), and its securities division. Wells Fargo & Company (NYSE:WAC) has begun offering its wealth management customers access to Bitcoin ETFs.
what happened: Bitcoin ETF development
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Citing sources, Bloomberg reported that the financial giants are expanding these ETFs to some wealth management clients who have expressed interest in these products.
The move follows the Securities and Exchange Commission's approval of nearly a dozen Bitcoin ETFs in January, a decision that markedly increased demand for these investment vehicles.
Despite the regulatory green light, the decision to list these volatile asset class products remains up to individual companies, with some still on the fence.
Why it matters: Bitcoin’s enthusiastic support by the financial sector
The inclusion of a Bitcoin ETF by Merrill and Wells Fargo marks a major shift, and also includes other large players such as: charles schwab company (NYSE:SCHW) and Robinhood Markets Co., Ltd. (NASDAQ:HOOD) also joined the fray shortly after the ETF received regulatory approval.
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UBS Group AG (NYSE:UBS) and potentially morgan stanley (NYSE:MS) is considering a similar offering, underscoring the industry's broader trend toward embracing cryptocurrencies as a legitimate asset class.
However, not everyone is convinced, Vanguard Group Co., Ltd. Expressed skepticism about the investment potential of virtual currencies.
Also Read: Bitcoin Bear Peter Schiff Furious: 'At what point do you admit you were wrong?'
Next Steps/Price Action: The Future of Bitcoin in Mainstream Finance
The success of these ETFs that hold Bitcoin directly is undeniable as the value of Bitcoin has skyrocketed, rising 40% this year alone to its highest level in more than two years.
With initial offers from financial giants like Black Rock Co., Ltd. (NYSE:BLK) and Fidelity Investments With net inflows of approximately $7.4 billion, the trajectory of Bitcoin and similar cryptocurrencies looks promising. However, the stance of some companies like Vanguard serves as a reminder of the continuing debate over the speculative nature of cryptocurrencies.
Price action: At the time of publication, Bitcoin (Crypto:BTC) rose 0.4% in 24 hours to $61,386, according to Benzinga Pro.
Read next: $6.26 million and rising: Inside Donald Trump's burgeoning crypto portfolio
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