Bank of America, Wells Fargo add spot Bitcoin ETFs to offering

Two wealth managers on Wall Street will support spot Bitcoin ETFs nearly two months after the products debuted on major U.S. exchanges. 

Bank of America’s Merrill Lynch and Wells Fargo will allow clients with brokerage accounts to trade spot Bitcoin (BTC) ETFs following billions in demand eight weeks after it became available. Bloomberg first reported the news, citing unnamed sources with intimate knowledge of the matter.

Spot Bitcoin ETF issuers include some of the largest asset managers in the U.S., such as BlackRock and Fidelity. However, wirehouses and traditional banks initially refrained from offering the product to customers. Vanguard, Citi Bank, and UBS boycotted the Bitcoin-backed investment vehicle at launch, crypto.news previously reported. 

Regardless, spot Bitcoin ETF providers have amassed over $20 billion in assets under management (AUM) underpinned by increasing Bitcoin prices. The token is up nearly 50% this year as the ETF wrapper draws capital from retail investors, hedge funds, and other capital controllers.

Spot Bitcoin ETFs capture tradfi stakeholders

Citigroup and UBS began allowing select customers to purchase spot Bitcoin ETFs on platforms in January. Merrill Lynch and Wells Fargo will also offer Bitcoin exposure to clients who request it. 

Another Wall Street stalwart, Morgan Stanley, is reportedly mulling enabling access to spot BTC ETF trading for its clientele. Bitwise chief investment officer Matt Hougan told CNBC that more tradfi giants would likely enter the market, bringing billions of dollars in sidelined capital into Bitcoin via ETFs.